Ranbaxy - 2010 Annual Report

Ranbaxy Laboratories Limited Annual Report 2010
CHAIRMAN'S
MESSAGE
Down memory lane...

Annual Report 1965
Annual Report 1975
Annual Report 1995
Annual Report 2005
Annual Report 1985
YesterdayToday
Tomorrow
Ranbaxy has a rich heritage and a glorious past.

Your company has over the years achieved a significant
presence in India and globally by leveraging its integrated
model across many developed, developing and emerging
nations. Indeed, it is a matter of great pride that the company is
widely acknowledged as the proud flag bearer of the Indian
pharmaceutical industry.
Business & Operations ..................................12

Research & Development..............................26
Corporate Governance...................................36
Certificate from Managing Director
and Director-Global Accounts.......................47
Board of Directors .........................................48
Report of the Directors ..................................49
Ten Years at a Glance....................................62
Auditors' Report.............................................63
Financial Statements of Ranbaxy
Standalone .....................................................66
Consolidated Indian GAAP.........................111
04
85,507 Mn
Corporate Social Responsibility and

Environment, Health & Safety ......................32
51,880 Mn
Global Human Resources ..............................30
7122 Mn
Global Quality ...............................................29
709 Mn
The Golden Jubilee year is a time to celebrate our past

successes, of which we have had many, in the last five decades
of our existence. It is also the time to utilise our learnings and
vast experience to firmly put behind us past challenges, and in
doing so, enable the company to move forth with renewed
vigour. With the shift in demographic and health factors
around the world and with rapid consolidation of the
pharmaceutical industry, this new decade will see innovative
thinking in the way healthcare solutions are brought within
easy reach of millions around the world.
Managing Director's Message .........................8
56 Mn
he year 2010 is of special significance as your

company entered its 50th year of incorporation.
Please allow me to thank you for your wholehearted
support in this fascinating journey.
Chairman's Message ........................................4
6.68 Mn
Chairman
Dear Valued Shareholders,
Milestones on the Leadership Path..................2
Sales Rs. Million
Dr. Tsutomu Une
CONTENTS
1965 1975 1985 1995 2005 2010
Years
MILESTONES ON THE
LEADERSHIP PATH
1961
Incorporated
as a Private
Limited Company
1993
Corporate Mission
enunciated - To
become a Research
based International
Pharmaceutical
Company
2003
Joins hands with

Clinton Foundation
on drugs for
HIV/AIDS
Business Today
recognises Ranbaxy
as one of the Most
Innovative
Companies in an
industry survey
1969
1994
2003
2007
Ist blockbuster
brand
Calmpose
launched
in India
State-of-the-art
Research Centre at
Gurgaon (India)
becomes
fully operational
Ranbaxy bags the

Economic Times
Award for
Best Performing
Company of the
Year
Global
Sales cross
US $ 1 Billion;
Joins the elite
club of Billion
Dollar Companies
Ranbaxys Drug
Discovery Team
achieves significant
milestone in GSK
research collaboration
- with the candidate
selection of compound
for Respiratory
Inflammation
Business World
ranks Ranbaxy as
the Most
Respected
Company in the
pharma industry
2007
1973
IPO (Initial Public

Offering)
launched; attains
Public Limited
company status
(listed in Feb 1974)
1995
2004
Makes its first

Anti-retroviral (ARV)
filing with the US FDA
under US Presidents
Emergency plan for
AIDS relief program
(PEPFAR)
1978
First
Joint Venture
set up in
Nigeria
Acquires Ohm
Laboratories Inc.,
a manufacturing
facility in USA
2004
1997
Ranbaxy Brazil
bags the
prestigious
Entrepreneurial
Company of the
year Award by
Frost & Sullivan
Ranbaxy partners
with Daiichi Sankyo (DS)
establishing a unique
2008 and powerful
Hybrid Business
Model; DS becomes a
majority partner
Ranbaxy launches
Daiichi Sankyo's
innovative
antihypertensive,
Olvance (Olmesartan)
in India - First
synergistic step
02
1983
A modern
pharmaceutical
plant at Dewas
(Madhya Pradesh),
India, goes on
stream
1998
1st product
under Ranbaxy
label introduced in
the US, the
world's biggest
pharmaceutical
market
2005
Third
state-of-the-art
R&D facility
opens in
Gurgaon (India)
Ranbaxy US
receives the
prestigious Supplier
Award from
Wal-Mart, for
outstanding
performance in the
first quarter of 2005
2009
Commences
Phase-III studies on its
anti-malaria
combination new
drug, Arterolane
Maleate + Piperaquine
Phosphate
Project Viraat
launched in India
a key initiative to
strengthen companys
leadership position
in India
1987
Production
starts at the modern
API plant, Toansa
(Punjab), India,
making Ranbaxy, the
country's largest
manufacturer of
Antibiotics
1999
Ciprofloxacin OD,
Ranbaxy's original
NDDS research
product, outlicensed to Bayer
AG, Germany
2005
Ranbaxy
Malaysia Sdn.
Bhd. (RMSB)
commissions its new
state-of-the-art
manufacturing
facility in
Malaysia
2010
Ranbaxy
delivers Quarterly
Sales of over
US $ 500 Million
for the
first time
1988
1999
Toansa (Punjab),
India, plant
gets US FDA
approval
Ranbaxy
conferred with
Rajiv Gandhi
National Quality
Award
The Golden Jubilee

Year 50 Years
of an inspiring,
pioneering and
historic journey!
2010
2011
2001
Ranbaxy's Paonta
Sahib facility
receives CII's
National Award for
Excellence in
Energy
Management
2006
Acquires
leading Romanian
pharma company
Terapia and
Be-Tabs
pharmaceuticals,
5th largest generics
company in
South Africa
CHAIRMAN'S
MESSAGE
YesterdayToday
Tomorrow
Dr. Tsutomu Une
Chairman
Dear Valued Shareholders,
he year 2010 is of special significance as your

company entered its 50th year of incorporation.
Please allow me to thank you for your wholehearted
support in this fascinating journey.
The Golden Jubilee year is a time to celebrate our past
successes, of which we have had many, in the last five decades
of our existence. It is also the time to utilise our learnings and
vast experience to firmly put behind us past challenges, and in
doing so, enable the company to move forth with renewed
vigour. With the shift in demographic and health factors
around the world and with rapid consolidation of the
pharmaceutical industry, this new decade will see innovative
thinking in the way healthcare solutions are brought within
easy reach of millions around the world.
Ranbaxy has a rich heritage and a glorious past.
Your company has over the years achieved a significant
presence in India and globally by leveraging its integrated
model across many developed, developing and emerging
nations. Indeed, it is a matter of great pride that the company is
widely acknowledged as the proud flag bearer of the Indian
pharmaceutical industry.
04
Ranbaxy has a rich heritage and a glorious past. Your

company has over the years achieved a significant presence in
India and globally by leveraging its integrated model across
many developed, developing and emerging nations.
I would like to assure you that it will

be our endeavour to build upon this
glorious past and that Ranbaxy will
continue to provide world-class,
affordable medicines. In improving
access to medicines, it will be
recognised as a trusted healthcare
partner, not only in India, but also
around the world.
Ranbaxy together with Daiichi Sankyo
is at the leading edge of a bold new
initiative that is progressively changing
the company from family owned to
professional, in harmonisation with
Daiichi Sankyo.
The year 2011 will be both a reflection
and an inflection touchstone, a turning
point that propels the company to its
next level of orbit. While celebrating
this historic and enriching journey, we
also move forward with determination
in our desire to explore new boundaries
and new horizons for the company.
Many important and fundamental
developments during the year have
helped Ranbaxy to strengthen its
operating fabric while securing its
financial position.
The top priority for Ranbaxy remains
to resolve the import ban and the
Application Integrity Policy (AIP) in
the US within the earliest possible time
frame. We continue to cooperate with
the authorities and have implemented
significant changes and improvements
in our systems and processes that will

stand us in good stead in the future.
The Hybrid Business Model that
Ranbaxy is pursuing along with
Daiichi Sankyo makes the company
even stronger. I believe the
opportunities to leverage strengths
individually and collectively are
multifaceted. They range from
globalisation to extracting greater
efficiencies throughout the
pharmaceutical value chain; are
focused beyond marketing and
05
encompass R&D, production, supply

chain, information technology among
others. The hybrid model seeks to go
far beyond mere synergy and has the
potential to transform the business with
exponentially beneficial outcomes for
both companies.
Ranbaxy and Daiichi Sankyo are now
moving towards a culture of
harmonisation that will become the
bedrock of all future engagement.
We have made a good start and
Ranbaxy has already introduced
Board of Directors (left to right): Mr. Percy K. Shroff, Mr. Takashi Shoda, Mr. Arun Sawhney, Dr. Tsutomu Une,
Mr. Rajesh V. Shah, Mr. Akihiro Watanabe, Dr. Anthony H. Wild
Daiichi Sankyo's flagship innovator products in markets like
India and Romania. Your company will be introducing more
such products shortly in Mexico, South Africa and Singapore,
where it has a strong presence.
I am confident that with

our around 14000 strong
multicultural and
multiethnic work force,
we are ready to
embrace the future.
Japan is another important market that is opening its doors to

generic pharmaceuticals. To enable the efficient and increased
penetration of 'Established Pharmaceuticals' in Japan, Daiichi
Sankyo Espha will be the lead vehicle ably supported by the
global expertise of Ranbaxy in generics.
Taking a strategic position for the future and leveraging
natural affinities, Ranbaxy's New Drug Discovery Research
(NDDR) was transferred to Daiichi Sankyo India Pharma
Pvt. Ltd. This move sharpens Ranbaxy's focus on the R&D of
generic pharmaceuticals, while keeping the innovative and
competitive excellence.
06
The hybrid model seeks to go far beyond mere synergy and

has the potential to transform the business with exponentially
beneficial outcomes for both companies.
In the year gone by, we also made

notable progress on our Anti-malaria
molecule which is in advanced stages
of development.
The dynamics of business are evolving
rapidly and the opportunities and
challenges of today may be entirely
different from the ones in the near
future, with change being the only
constant. I feel the most important
basis for this dynamic change is the
individual. In order to deal with this
change and stay ahead, we need people
who uphold the values of honesty and
integrity. Ranbaxy has a pool of such
talented individuals. I am confident
that with our around 14000 strong
multicultural and multiethnic work
force, we are ready to embrace the
future.
We continued to make sincere efforts
to promote good health, social
development and better environment,
through various company programs
that contribute to sustainable, all round
growth. The company is also
committed to bringing high quality
affordable medicines, including
medicines for HIV Aids, to the
underserved. It was a proud moment
when the Access to Medicine (ATM)
Foundation, a Netherlands-based nonprofit organisation, ranked your
company as the industry leader under
the generics category for improving
access to needed medicines.
Ranbaxy has a highly experienced

Board and a strong operational team.
In line with the principles laid down in
Ranbaxy's Code of Corporate
Governance, the Board has guided the
operating management to take
informed decisions and establish
policies that are in the best interests of
the company and its shareholders.
We strongly believe reputations are
built on the foundation of ethics,
transparency and trust and that is the
underlying principle followed by the
Ranbaxy Board. I would like to thank
the Board of Ranbaxy for their
continued advice.
With strong teamwork, Ranbaxy will
overcome all challenges. My special
appreciation and thanks to all our
employees at Ranbaxy for their very
best efforts.
We see the coming years as years of
opportunity. I would like to assure you
that we are poised favourably to take
07
the next big leap that will bring with it

greater success.
I would like to thank all our valued
shareholders for their enduring support.
What we have achieved would certainly
not have been possible without your
unfailing trust.
Best Wishes,
Dr. Tsutomu Une

Chairman
MANAGING DIRECTOR'S
MESSAGE
A Legacy of Modernity
Arun Sawhney
Dear Shareholders,
Managing Director
n 16th June 2011, Ranbaxy will complete 50 years

of successful operations. It will be a proud moment
for all of us. Starting as a small domestic company,
Ranbaxy has today transformed itself into a truly global
organisation offering products in over 125 nations.
This enriching journey is a tribute to the significant

contribution made by the present and past generation of
employees and the visionary leadership, the company has been
always fortunate to have. In this long journey, your
encouragement and support has inspired us to always give our
best and we will continue our efforts to further enhance value
every day.
Ranbaxy observed strong growth momentum during the year
2010, marked by a financial turnaround and robust operational
performance in key geographies.
The company surpassed the guidance for the year recording
consolidated sales of US $ 1868 Mn (Rs. 85,507 Mn) in dollar
terms. Earnings Before Interest Taxes Depreciation &
Amortization (EBITDA) were US $ 402 Mn (Rs. 18,389 Mn),
compared to US $122 Mn (Rs. 5,842 Mn) in 2009. Earnings
Before Tax, Share in Loss of / Diminution in the value of
Investments in Associates and Minority Interest were
08
Ranbaxy observed strong growth momentum during the year

2010, marked by a financial turnaround and robust operational
performance in key geographies.
Emerging markets recorded sales of

US $ 927 Mn (Rs. 42,434 Mn),
contributing 50% to global sales and
developed markets recorded sales of
US $ 828 Mn (Rs. 37,889 Mn),
contributing 44%.
We benefited from the launch of FirstTo-File (FTF) products, in USA, an
improvement in working capital
utilisation and forex gains.
US emerged as our top market,
recording sales of US $ 600 Mn on the
back of successful launch of FTF
products and improvement in base
business. We launched Alzheimer's
drug, Donepezil Hydrochloride 5 mg
& 10 mg with 180 day market
exclusivity. Other FTF products that
were successfully monetised included
Tamsulosin Hydrochloride,
Oxycodone and Valacyclovir
(launched in Q4, 2009).
The India business continued its
healthy trend of growth as project
Viraat took shape. This strategic
initiative is directed at strengthening
our domestic business. A detailed
analysis of doctor prescriptions to
1,00,000
Sales Rs. Million
US $ 507 Mn (Rs. 23,217 Mn)

compared to US $ 210 Mn (Rs. 10,098
Mn). At the Profit After Tax (PAT)
level, the current year profit amounted
to US $ 327 Mn (Rs. 14,968 Mn)
against US $ 61 Mn (Rs. 2,965 Mn) for
the previous year.
85,507
80,000
73,441
60,000
40,000
18,389
20,000
5,842
-
Year
2009
SALES
assess gaps in supply, careful

evaluation of zonal geographies for
coverage and focused therapy and
customer research, preceded the
implementation. The program is
moving well and has resulted in the
creation of incremental demand in high
growth segments and targeted
geographies.
Sales in Europe were a shade higher
than last year backed by strong
performance in Romania.
Other markets that clocked a notable
performance include CIS, Africa,
Latin America and Malaysia.
We are actively pursuing new growth
areas including vaccines and biosimilars and have moved forward in
this direction. The company entered
the vaccines arena with the acquisition
of product rights and a manufacturing
facility from Biovel Life-sciences
Private Limited. This provides a good
platform to grow the vaccines and biotherapeutics portfolio.
09
14,968
2,965
EBITDA
2010
PAT
To harness the potential of our Hybrid

Business Model, we rolled out
synergies in many global markets.
Partnerships have been announced for
introduction of Daiichi Sankyo's
flagship innovator products, Prasugrel
(Prasita) in India and Levofloxacin
(Tavanic) in Romania and South
Africa. We will now see the true
benefits of this model with exponential
advantages that go beyond mere
synergy.
In 2010, Daiichi Sankyo established a
new entity Daiichi Sankyo Espha Co.
Ltd. (DSEP) in Japan to market generic
drugs. Ranbaxy will have the
opportunity to develop, manufacture
and supply products for marketing by
DSEP in Japan, in the years to come.
In order to further strengthen the
collaboration between Ranbaxy and
Daiichi Sankyo, a 'Global Hybrid
Business Office' was set up with the
objective of maximising synergies
throughout the pharmaceutical value
chain.
Emerging markets
recorded sales of
US $ 927 Mn
(Rs. 42,434 Mn),
contributing 50% to
global sales and
developed markets
recorded sales of
US $ 828 Mn
(Rs. 37,889 Mn),
contributing 44%.
Realigning the company's R&D

structure, Ranbaxy's New Drug
Discovery Research (NDDR), was
transferred to Daiichi Sankyo India
Pharma Pvt. Ltd. This move will
provide a sharper focus to our R&D
efforts in our core area of generics and
allow us to further explore complex
and specialist areas. The hallmark of
innovative research practice and a
research mindset remain strongly
embedded in the DNA of Ranbaxy and
will be positively reflected in our
future actions.
161 approvals. The company also filed

142 Drug Master Files (DMF)
comprising 39 Active Pharmaceutical
Ingredients (API) across various
countries.
A number of patents originating from
our R&D labs have also been filed
across the globe. These represent
technologies that can be monetised in
the future and speak eloquently to the
strengths of our R&D team.
The company made significant

progress on the Anti-malaria molecule.
We remain sanguine in bringing this to
commercialisation soon.
In South Africa, we opened a new

state-of-the-art manufacturing facility
that further underlines our commitment
towards the African continent. This is
Ranbaxy's second manufacturing
facility in South Africa and the third in
the African continent.
During the year, 178 Abbreviated New

Drug Application (ANDA) filings were
made in various global markets with
Ranbaxy's manufacturing facility at the

SEZ in Mohali, India, commenced
production of exhibit batches.
10
The hallmark of innovative research practice and a research

mindset remain strongly embedded in the DNA of Ranbaxy
and will be positively reflected in our future actions.
The company successfully went

through four inspections by the US
FDA in India, Europe and the United
States. In many other countries,
Ranbaxy's global sites had successful
inspections by Regulatory agencies.
Manufacturing continues to be the
backbone of our supply chain. In the
coming year we will continue to make
investments in infrastructure and
technologies that will address our
business, in future.
In the US, resolution of the import ban
and the Application Integrity Policy
(AIP) issue remains our top priority.
The joint task force comprising
officials from Ranbaxy, Daiichi
Sankyo and attorney groups is guiding
the process to resolve these issues with
FDA/DOJ.
At Ranbaxy, we encourage a culture of
teamwork, transparency and trust for
superior operational governance.
Our biggest strength lies in our highly
committed people who take great pride
in their work. With their support, the
company has emerged stronger.
We continuously invest in the
development of our people to
benchmark ourselves externally and
internally to stay competitive and
become best-in-class.
I am pleased that we have closed 2010
on a positive note, giving us a solid
foundation to build upon.
This year you will see many more

initiatives aimed at securing our future
growth drivers. 2011 will be a year of
putting behind challenges,
consolidating strengths, honing our
skill sets and planning.
Let me also take this opportunity to
thank the Ranbaxy Board for
entrusting me with the task to lead
Ranbaxy into its next phase of growth.
I look forward to working with all of
you to make Ranbaxy a best-in-class
global generics company.
With warm regards,
Arun Sawhney
Managing Director
11
BUSINESS &
OPERATIONS
Focussed on Growth.
Everywhere.
Key Markets Overview

North America
Despite a challenging business environment in the region,
Ranbaxy posted its highest revenue and profit figures in North
America. This performance was primarily a consequence of
the successful monetisation of its First-To-File (FTF)
opportunities. Overall, the North America region achieved
combined net sales of US $ 660 Mn, representing a growth of
67% over the corresponding year. While sales in the USA
totalled US $ 600 Mn, a growth of 80%, Canada recorded sales
of US $ 60 Mn.
Venkatachalam K
Senior Vice President &
Regional Director - North America
& Latam
USA
The robust growth in this market can largely be attributed to a
sustained dominant market share for Valacyclovir 500 mg &
1 gm, the successful realisation of a one-time opportunity with
Oxycodone ER, and the launch of FTF product, Donepezil
Hydrochloride 5 mg & 10 mg. The Over-The-Counter (OTC)
business recorded a modest growth. The branded business was
impacted by the absence of Sotret resulting in a decline in
sales. However, the key dermatology brands recorded
impressive growth.
12
Ranbaxy has 135 approved applications from the US FDA with

70 applications under consideration.
On the manufacturing side, Ohm

Laboratories Inc. (Ohm) remained the
mainstay for supplies to the US market
including the FTF products,
Valacyclovir and Donepezil. Capacity
and capability expansion was
concluded at Ohm, making it
Ranbaxy's largest facility in terms of
tablets/capsules. Product development
at Ohm was also augmented to enable
the filing of more Abbreviated New
Drug Applications (ANDAs), from the
USA. In 2010, Ohm also successfully
completed two prior approvals and
general cGMP inspections by the U.S.
Food and Drug Administration.
Over the past two years, Ohm has
undertaken a collaborative,
multifunctional approach to employee
safety. Changes in equipment and
employee practices increased
productivity levels significantly.
In partnership with the State of New
Jersey, employees also attended a
variety of skill development programs.
In 2010, Ranbaxy filed a total of 12
ANDAs with the US FDA, of which
three, the company believes, may be
eligible for FTF exclusivity. To date,
Ranbaxy has 135 approved
applications from the US FDA with 70
applications under consideration. The
product portfolio is also augmented
through third party relationships.
During the year, three outstanding

patent litigations were settled, bringing
certainty to the launch of these
products. In March 2010, Ranbaxy
entered into an agreement with Takeda
for the settlement of litigation
surrounding Ranbaxy's FTF ANDA for
generic Actos which enables the
company to commercialise the product
no later than August 17, 2012 (or
earlier, under certain circumstances).
In May 2010, Ranbaxy entered into an
agreement with Medicis, settling all
litigation related to Ranbaxy's ANDA
for generic Solodyn. Under the
agreement, Ranbaxy has a license to
launch the 45 mg, 90 mg and 135 mg
strengths of generic Solodyn,
commencing November 2011 (or
earlier, under certain conditions).
In August 2010, Ranbaxy settled with
Roche on its FTF application for
generic Valcyte. Ranbaxy has
received a license to enter the market
no later than March 2013.
13
Ranbaxy continues to fully cooperate

with the US FDA and other authorities,
including the U.S. Department of
Justice and remains optimistic to
resolve all outstanding issues at the
earliest. The company is determined to
make all possible efforts of being fully
compliant with all U.S. regulatory
standards and work towards offering
affordable, quality generic medicines
to customers and patients.
Canada
The Canadian business witnessed some
significant price cuts in the range of
30-50% affected by the Canadian
governments new drug pricing policy.
Despite the challenging environment,
the product portfolio continued to grow
and business was expanded into other
areas of the trade segments. Ranbaxy
Pharmaceuticals Canada Inc. (RPCI)
launched Atorvastatin tablets on Day-1
and captured significant market share.
The company also launched three
additional products and filed 14 new
Romania, the company's largest market in Europe,

bounced back with 19% growth and maintained its
No.1 rank in the generic market.
applications with Health Canada, to

further expand the Canadian portfolio.
In five years of its existence, RPCI is
ranked eighth among generic
pharmaceutical companies in Canada.
The region will continue to remain an
important market for Ranbaxy in the
coming decade.
During the year, out-licensing

agreements were signed with several
leading companies in the Latam
market. Ranbaxy filed 38 new products
across Latam, and development of new
products was accelerated.
Latin America
Ranbaxy was ranked

No. 9 in Brazil with a
market share of 2.8%
in the generics
segment.
In 2010, the Latin America region

achieved sales of US $ 83 Mn with a
growth of 17%. Brazil was the key
market driving the regions
performance. Ecuador, Peru and the
Caribbean Islands also made healthy
contributions. The key products
driving the growth were Amoxy Clav,
Donepezil, Imipenem and Cilastatin.
In September 2010, the company
launched Escitalopram in Brazil and
this product has been steadily
improving its market share. Ranbaxy
was ranked No. 9 in Brazil with a
market share of 2.8% (IMS MAT Dec
2010) in the generics segment.
In Mexico, the New Antibiotics Law
introduced by the Ministry of Health,
impacted the company's strong
antibiotics portfolio, thereby affecting
the company's overall performance in
this market.
In Ecuador, Caverta (Sildenafil)
maintained the No. 1 rank and Colcibra
(Celecoxib) the No. 2 rank in their
respective segments.
14
Debashis Dasgupta
Regional Director - Europe
Europe
In Europe, Ranbaxy recorded sales of
US $ 272 Mn, achieving marginal
growth, inspite of difficult economic
conditions and significant exchange
rate erosion.
Romania, the company's largest market
in Europe, bounced back with 19%
growth and maintained its No.1 rank in
the generic market.
The state-of-the-art bioequivalence
facility in Romania underwent two
successful inspections by overseas
regulatory agencies.
In UK, Ranbaxy was amongst the leading generic suppliers for

several key molecules, particularly Simvastatin, Tamsulosin,
Cefaclor, Aciclovir and Cefalexin.
During the year, several new products

were launched, to strengthen the
company's business in the hospital
segment. A new team was tasked to
launch products such as Imipenam+
Cilastatin, Piperacillin+Tazobactum,
Ceftriaxone and Bicalutamide.
The OTC portfolio was also
strengthened with the introduction of a
range of products. In Romania,
Tavanic (Levofloxacin) and Evista
(Raloxifene), the two innovator
products from Daiichi Sankyo
launched last year, continued to
perform exceptionally well.
In Germany, Nordics and Benelux,
Ranbaxy posted a strong performance
despite a changing environment and
severe competition in the tender
business. The company's market share
in Germany doubled. The year saw
several important new product
launches such as Fluconazole,
Fosinopril, Losartan, Omeprazole,
including the Day-1 launch of
Pramipexole.
In the UK, three products were
launched on Day-1 viz. Losartan,
Pramipexole and Risedronate,
reinforcing the company's position as
one of the UK's most reliable suppliers
of products, post patent expiry.
During the year, Ranbaxy UK secured
several major NHS tenders,
contributing to over one third of its
total sales. The company was awarded
its first injectable anti-infective tender
by the NHS including Imipenem+

Cilastatin. In UK, Ranbaxy was
amongst the leading generic suppliers
for several key molecules, particularly
Simvastatin, Tamsulosin, Cefaclor,
Aciclovir and Cefalexin.
In Italy, the direct sales force was
augmented to cover the high potential
areas. During the year, 11 new
products were introduced in the
market. These included the Day-1
launch of Losartan and Nebivilol.
Other key products like
Co-Amoxiclav, Pantoprazole,
Ceftriaxone and Tamsulosin, recorded
healthy increase in market share.
The company continued to strengthen
its product portfolio in France with
successful Day-1 launches of
Nebivolol, Losartan and Risedronate.
15
In addition, several other key products

such as Valacyclovir, Pravastatin,
Imipenim+Cilastatin were also
introduced.
The economic conditions in Southern
and Central Europe remained weak.
Drastic reforms in Turkey led to
disruption in approval and import for
foreign generics. Ranbaxy launched
Atorvastatin in Bulgaria and Slovakia.
In Finland, the market share for
Atorvastatin was further improved
despite the launch of generic
Atorvastatin by the innovator. Ranbaxy
also significantly enhanced its overall
market share in the Netherlands by
winning competitive tenders for
multiple products.
In Poland, besides the launch of
Atorvastatin, six other new products
were introduced during the year.

These were Quinapril, Isotretnoin,
Pantaprzole, Perindopril, Ramipril and
Finasteride.
Some of the significant product
approvals received by the company in
the European market were
Meropenam, Pipera+Tzo, Piperacillin,
Esomeprazole, Pramipexole,
Risedronate, Lercanidipine Hcl,
Ceftriaxone and Nebivilol.
India
The Indian market achieved sales of
US $ 384 Mn. Various strategy
initiatives were undertaken during the
year, leading to continued momentum
in developing a sustainable and
profitable business proposition for
India. The domestic formulation
business grew by 11.4 % over the last
year (ORG-IMS, MAT-Nov 2010).
Sanjeev I Dani
Senior Vice President &
Regional Director - Asia, CIS & Africa
During the year Viraat, Ranbaxy's

strategic initiative to strengthen the
companys leadership position in India,
was successfully implemented.
This plan was developed based on
prescription research of product
portfolio, potential of town class
geographies and priority of customer
segments, which resulted in the
generation of demand in the high
growth, yet under-penetrated market
segments.
16
The domestic operations under various

Business Units were restructured for
greater customer alignment and a focus
on high growth segments. This has
strengthened the chronic franchise
(Life Style Related Therapies) and
reinforced the company's leading
position in the acute segment.
The contribution of chronic therapy
portfolio to total sales stands at 24%.
The Company also launched a number
of new products during the year.
Two new products, CeroximXP
(Cefuroxime+Clavulanic Acid) and
Zifexim (Cefixime+Ofloxacin), feature
amongst the Top-30 launches by the
industry. Many launches are among the
'Firsts' in the Indian Pharma Market.
These include Lulifen Cream
(Luliconazole) in Dermatology;
Solitral Tablets (Solifenacin+
Alfuzosin) in Urology; Mobrine OD
Tablets (Cyclobenzaprine) in Muscle
Relaxant; Mox 875 mg Tablets
(Amoxicillin), Mox BD Suspension
(Amoxicillin) and Moxclav XR Tablets
(Co-amoxyclav) in the Anti-Infectives
segment.
During the year, Ranbaxy launched
Prasita (Prasugrel), a new platelet
inhibitor for acute coronary
syndromes, developed by Daiichi
Sankyo. This is the second product
from the Daiichi Sankyo research
During the year Viraat, Ranbaxy's strategic initiative

to strengthen the companys leadership position in
India, was successfully implemented.
portfolio, to be introduced in India, by

Ranbaxy. It follows the 2009 launch of
Olvance (Olmesartan Medoxomil), an
Antihypertensive. Both Olvance and
Prasita have improved their ranks in
their respective segments. Olvance has
moved from 20th rank to 5th while
Prasita is now ranked 5th, up from the
9th rank, it occupied at the time of
launch.
The company's brand for
Dyslipidemia, Rosuvas (Rosuvastatin),
claimed the Marketing Excellence
Award 2010, instituted by the
Organisation of Pharmaceutical
Producers of India (OPPI), for the
existing products category. The award
is testimony to Ranbaxy's ethical,
professional and innovative marketing
practices.
Nine Brands from Ranbaxy, feature in
the Top-100 list of the Indian Pharma
Industry. These are Revital (Ginseng
combination), Mox (Amoxicillin),
Storvas (Atorvastatin), Volini
(Diclofenac), Sporidex (Cephalexin),
Cifran (Ciprofloxacin), Zanocin
(Ofloxacin), Cepodem (Cefpodoxime)
and Moxclav (Co-amoxiclav).
This illustrates the company's strength
in brand marketing and sales.
With the changing business
environment, Ranbaxy has also
identified Novel Drug Delivery System
(NDDS) formulations and in-licensing
as strategic focus areas.
The contribution of NDDS portfolio to

total Ranbaxy sales stood at 6.6% and
the company has a leadership position
in this segment. A total of 9 NDDS
formulations were launched in 2010.
Ranbaxy's in-licensed portfolio has
also gained momentum. The company
launched a New Chemical Entity
(NCE), Lulifin (Luliconazole), a
Dermatology product. This follows a
strategic in-licensing agreement with
Summit Pharmaceuticals International
Corporation, Japan. The arrangement
gives Ranbaxy, exclusive marketing
rights for India.
There has been an increased emphasis
on Knowledge Management and
Medico-marketing initiatives. This has
led to a closer interface with the
Medical Fraternity. As part of this
initiative, close to 18,000 interface
programs were organised with Doctors.
These included Symposia, Panel
Discussions, Round Table Meets and
Medical Education programmes.
Ranbaxy also organised Disease
Awareness, Diagnosis and Treatment
Camps covering chronic disease areas
such as Diabetes, Hypertension,
Osteoporosis, Epilepsy etc.
The region also increased operational
efficiency through better management
of financial resources, working capital,
inventory and receivables. Ranbaxy's
India operations have been geared
towards demand generation in the high
growth pharmaceutical segment.
17
Asia Pacific (excluding India)

The Asia Pacific region recorded sales
of US $ 78 Mn, with strong growth
from the hospital business in Malaysia,
ARV business in Cambodia and
generics in Australia. The businesses
showed a double digit growth,
excluding the brands divested.
The company has refocused its
business model and is capitalising on
the strengths of Daiichi Sankyo in
China, Japan and South Korea to claim
a larger share of the market.
Japan
Ranbaxy continued to supply stocks of
existing products during the year to its
erstwhile JV partner - Nippon
Chemiphar, as per its terminal
agreement. In 2010, Daiichi Sankyo
launched a new entity, Daiichi Sankyo
Espha Co., Ltd (DSEP) in Japan to
market generics drugs. Ranbaxy will
develop products that will be marketed
in Japan at a later stage through DSEP.
China
Ranbaxy introduced Voglibose in 2010
and continued to market some
products, notably Bacqure Imipenem+Cilastatn in China.
Ranbaxy has also commenced the
development of generic products to be
marketed by the field force of Daiichi
Sankyo in China.
Australia
Ranbaxy Australia Pvt. Ltd. (RAPL)
successfully launched Pantoprazole
and Lansoprazole in the Australian
market on Day-1 of patent expiry.
The leading products during the year
were Pantoprazole, Simvastatin,
Cephalexin, Fluconazole and
Amoxicillin. Other launches in the
market were Lamotrigine, Lisinopril
and Topiramate.
Malaysia
Ranbaxy Malaysia
Sdn. Bhd. (RMSB) did
well with regard to
Government hospital
sales which witnessed
high growth during the
year.
Ranbaxy Malaysia Sdn. Bhd. (RMSB)

did well with regard to government
hospital sales which witnessed high
growth during the year with products
such as Pantoprazole, Clopidogrel and
Topiramate. Other major products that
performed well were Clavam
(Co-amoxyclav) Injection, Atorvastatin
and Amlodipine. The company filed 20
new product dossiers for approval.
New product launches were
Clarithromycin OD, Lamotrigine,
Pantoprazole, Cetrizine and
Sumatriptan.
Singapore
Ranbaxy is utilising the fast-track
registration approval process to launch
products earlier in the market.
The business of Daiichi Sankyo was
transferred to Ranbaxy from March
18
2011, which will provide new

opportunities to Ranbaxy.
Thailand
In Thailand, short term political
instability had an impact on the
business. However, in the long-term,
Thailand holds good potential.
Ranbaxy Unichem Company Ltd.
(RUCL) and Daiichi Sankyo Thailand
are exploring opportunities to
capitalise on synergies emanating from
the Hybrid Business Model. Leading
products in Thailand include
Co-amoxiclav, Cefaclor, FBC tablets,
Clarithromycin and Gaszym tablets.
In addition, Imipenem+Cilastatin was
introduced and Ranclav 1gm was
re-launched.
Middle East
The key products of Ranbaxy in this
region were Imipenem+Cilastatin,
Ciprofloxacin, Ranitidine, Ceftriaxone
and Omeprazole. During the year,
Tamsulosin OD and Fluconazole were
introduced in the market. The company
received the registration certificate for
Dewas (India) facility from the Gulf
Co-operation Council (GCC) countries.
Consequently, new product dossiers
from Dewas are being accepted.
Ranbaxy received its first product
registration for Enhancin (Coamoxyclav) tablets 1gm from GCC.
Ranbaxy South Africa was the first company to launch a

generic version of Atorvastatin (Lipogen) in South Africa.
Russia
Russia demonstrated healthy growth in
2010. Ranbaxy continues to hold the
Number 1 position in the represented
market in Russia. The top products
were Ketanov, Faringosept (OTC),
Coldact (OTC), Cifram and Pylobact
(OTC). The company also introduced
Atenolol+Chlortalidone and Enalapril,
to further strengthen its market
position.
New Regulatory Guidelines for
Russia have come into effect from
September 1, 2010. Under the Russia
Pharmaceutical 2020 Policy, several
measures to curtail the burgeoning
imports of medicines into the Russian
Federation have been announced.
Ukraine
Ukraine's economic recovery has been
sluggish and this trend is expected to
continue into 2011, resulting in
subdued domestic demand.
Launch of a number of products was
delayed in the year due to changes in
requirements of the Ministry of Health.
The top products in this market were
Ketanov (Ketorolac), Faringosept
(OTC), Levofloxacin, Ciprofloxacin
and Candesartan.
Africa
The region showed good sales for the
year, at US $ 154 Mn, with 23%
growth but the ongoing rise in

commodity prices pose a major
challenge to several African countries.
South Africa
Ranbaxy South Africa was the first
company to launch a generic version of
Atorvastatin (Lipogen) in South
Africa. The company also launched
Moxifloxacin during the year. A new
facility for oral solids was inaugurated
at the Be-Tabs plant. In December
2010, a Government tender for ARV
RT71 was awarded to Sonke
Pharmaceuticals [a joint venture
between Ranbaxy (Pty) Ltd and
Community Investment Holdings].
The contract is worth R 913.5 Mn for
medicines to be supplied over 2 years,
covers 9 products, including Tenofovir
300 mg which was also launched in the
private market in the last quarter of
2010. Other products that were
introduced for the first time in South
Africa include Moxifloxacin,
Donepezil, Nifedipine and
Fexofenadine. Ranbaxy also won an
ARV tender in Namibia where supply
started in the last quarter of 2010.
Nigeria
During the year, the company
introduced Clopidogrel, Amlodipine,
Levocetrizine, Revital liquid and
Ranvitol liquid. Ranbaxy's leading
products in this market are Gestid
(Antacid), Ranferon (Iron Tonic) and
19
Brustan-N (Ibuprofen). Credit off-take

has remained a problem in the country.
Ranbaxy has performed well in the
ARV tender and the company has
several ARV orders for 2011.
Rest of Africa (ROA)
The Rest of Africa delivered robust
growth largely from North and
South East Africa. This is the first year
in which the region crossed the
US $ 50 Mn mark. The company won
ARV tenders from Cename, Cameroon
and Mozambique. Other notable
product introductions were
Venlafexine in Egypt and Alfuzocin
and Pravastatin in Morocco.
In addition, Amlodipine, Chericof
liquid, Cefpodoxime Proxetil,
Mupirocin ointment, Ramipril,
Meloxicam, Secnidazole, Brustan and
Desloratidine were introduced in
various countries of ROA.
Revital, the flagship brand claimed the

Indian Pharmaceuticals Summit Award 2010
and the Readers Digest Most Trusted Brand
Award 2010.
Global Consumer
Healthcare
Brijesh Kapil
Vice President Ranbaxy Global Consumer Healthcare
The companys Global Consumer

Healthcare Business recorded sales of
US $ 54 Mn, registering a healthy
growth of 23% during 2010.
Revital, the flagship brand, continued
its leadership position in its category
(Ginseng and Rejuvenators) in India as
per IMS-Health SSA MAT, Dec 2010,
with a dominant market share of 88%.
The brand claimed the Indian
Global Material
Sourcing
Govind K Jaju
The Global Material Sourcing (GMS)

function continued its focus on
procurement of key materials from
countries offering competitive pricing.
E-sourcing and the introduction of new
sources / alliances for key materials
also helped the company in optimising
cost and reducing risk. During the year,
Senior Vice President Global Material Sourcing

& API Business
20
Pharmaceuticals Summit Award 2010

and the Readers Digest Most Trusted
Brand Award 2010, during the year.
Volini, the fastest growing brand in the
pain relief category retained the No. 1
brand status at chemist level
(AC Nielsen, April - June 2010) and
was adjudged as the Best Brand at the
Indian Pharmaceuticals Summit
Award 2010. The other brands,
Chericof, Chywan Active, Revitalite
and Garlic Pearls also performed well
during the year.
GMS used the e-commerce platform

for sourcing and achieved greater
transparency in the procurement
process, achieving significant cost
reduction. In 2010, Ranbaxy was the
No.1 Pharma Company in India by
total spend on e-sourcing and the No. 1
Pharma Company across the globe in
terms of direct spend, on e-sourcing
platforms of service providers.
In September 2010, a new state-of-the-art manufacturing

facility, Be-Tabs Pharmaceuticals, was inaugurated in
South Africa by Mr. Anand Sharma, Hon'ble Minister for
Commerce & Industry, Govt. of India.
Global Manufacturing
(API)
Active Pharmaceutical Ingredients
(API) manufacturing is synchronous
with Ranbaxys current Hybrid
Business Model. API manufacturing
remained focused on excellence and
continual improvement in Quality,
Servicing, Cost and Environment,
Health and Safety (EHS).
The year saw significant improvements
in the Quality Management System.
During the year, external audits of API
manufacturing sites by various
regulatory agencies and customers
were successfully conducted.
These included inspections of BfArm
Germany at Toansa and Mohali sites,
EU inspection at Dewas site (including
Penem facility) and TGA (Australia)
inspection at Paonta Sahib
(Fermentation) and Dewas sites.
With increased focus on speed to
market, servicing efficiency and
capacity utilisation improved
considerably. Launch quantities for
planned new products including
Valacyclovir (FTF), Donepezil (FTF),
Tamsulosin, Valsartan, Irbesartan,
Olanzapine, Pravastatin, Candesartan,
Meropenem and Pantoprazole were
delivered across various global
markets. The companys Toansa site
T L Easwar
Ashwani Malhotra
Vice President - API Manufacturing
Senior Vice President - Global Pharma

Manufacturing & Supply Chain
started supplying Esomeprazole to

AstraZeneca from September 2010.
To meet increasing demands, various
capacity enhancement projects were
completed during the year. Efforts at
improving cost effectiveness in
manufacturing continued through
numerous positive initiatives including
improvement in yields, solvent and
catalyst recovery, energy savings and
better asset utilisation.
Global Manufacturing
(Dosage Form)
All API sites remained fully compliant

with applicable EHS regulations.
There were no major safety or
environmental incidents at any of the
API Manufacturing sites. Extensive
EHS training was imparted to
employees and contractors during the
year.
21
In September 2010, a new state-of-theart manufacturing facility, Be-Tabs

Pharmaceuticals, was inaugurated in
South Africa by Mr. Anand Sharma,
Hon'ble Minister for Commerce &
Industry, Govt. of India.
The inspection of the facility has been
completed by the Medicines Control
Council (MCC), South Africa and
approvals are expected soon. The
packaging unit has already received the
necessary approvals. The new facility
will manufacture Analgesics, Cold,
Cough and Flu preparations, AntiHistamines, Anti-Hypertensives, CNS
Drugs, Vitamins and Minerals as well
as a comprehensive range of Over-theCounter (OTC) medication.
Alliances &
Outsourcing
Ranjan Chakravarti
Senior Vice President Global Therapy &
Alliance Management
Anti-infectives continue
to remain the largest
therapeutic segment for
Ranbaxy during 2010
with four molecules
featuring among the top
ten.
In the past one year, recognising the

rapid changes in the business
environment and to cater to the
changing dynamics of the global
pharmaceutical industry, Ranbaxy has
aggressively moved to build strong
alliances with companies in India and
other markets. This model represents a
great opportunity for synergy benefits
to both Ranbaxy and alliance partners.
These partnerships have enabled the
company to accelerate the launch of
many innovative and affordable quality
generics by leveraging the strength of
both the partners. At the same time, it
has allowed the company to remain
focussed and use its considerable
strengths in R&D and manufacturing
on more significant opportunities.
Leveraging synergies to drive
growth in key therapy areas
Anti-Infectives
Anti-infectives continue to remain the
largest therapeutic segment for
Ranbaxy during 2010 with four
molecules featuring among the top ten.
Valacyclovir, which was launched in
the US, and certain European markets
in 2009, continued to perform well to
remain the top selling molecule for the
22
company. Co-amoxyclav,
Ciprofloxacin and Imipenem+
Cilastatin were other molecules that
maintained their leadership positions in
the Anti-infectives portfolio of
Ranbaxy. Consolidating its Penems
portfolio across the markets, Ranbaxy
launched Imipenem+ Cilastatin in key
European markets in 2010.
Leveraging synergies generated
through the Hybrid Business Model,
Ranbaxy launched Daiichi Sankyos
innovative antibiotic brand, Tavanic
(Levofloxacin) in Romania.
Cardiovascular
With Simvastatin and Atorvastatin in
the list of top five molecules,
Cardiovascular was the second leading
therapeutic area for Ranbaxy in 2010.
Building on its strong statin franchise
across a large number of markets,
Ranbaxy launched Atorvastatin under
the brand name Lipogen in South
Africa. Ranbaxy became the first
company to launch generic
Atorvastatin in the South African
market in 2010 and the only one to
introduce all strengths including 80 mg
Atorvastatin. The global settlement
with Pfizer also enabled the company
to launch the product in Canada under
the brand name RAN-Atorvastatin.
The product was also launched in
Romania, Poland, Bulgaria and
Slovakia.
Through its Joint Venture company, Sonke in South

Africa, Ranbaxy won a significant portion of the
prestigious two year tender, which aims to treat close to
2 million patients over the next couple of years.
In a strategic move to leverage the
synergies between Ranbaxy and Daiichi
Sankyo, Prasugrel, a novel Anti-Platelet
drug, was introduced in India under the
brand name Prasita. This is the second
product from the Daiichi Sankyo
portfolio to be introduced in India, after
Olmesartan Medoxomil, brand
Olvance, a new antihypertensive that
belongs to the class of Sartans, and its
fixed dose combination with
Amlodipine (Ol-Vamlo).
Central Nervous System (CNS)

Ranbaxy received final approval from
the U.S. Food and Drug
Administration in November 2010 to
manufacture and market Donepezil
Hydrochloride Tablets 5 mg and 10 mg
with 180 day market exclusivity in the
U.S. The drug is indicated for the
treatment of dementia of the
Alzheimer's type, and in patients with
mild to moderate and severe
Alzheimer's disease. Donepezil was the
third largest-selling molecule for
Ranbaxy in 2010 in USA, Brazil,
Romania and South Africa.
contributed to the growth in this

therapeutic area. Oxycodone Extended
Release tablet was launched in 2010 in
the US, following settlement with
Purdue Pharmaceuticals.
Volini has strengthened its presence
in the Indian market by garnering a
significant share in the OTC segment.
Gastrointestinals
Some of the other launches in CNS

were Venlafexine in Spain, Gabapentin
in Romania and Fluoxetine in France.
Ranbaxy successfully launched

Pantoprazole and Omeprazole in Europe
and Omeprazole combination in the US
respectively. With introduction of
Esomeprazole and Rabeprazole in the
emerging markets, Gastroenterology
will continue to remain a key
therapeutic segment for Ranbaxy.
Metabolic
Dermatology
Anti-Retrovirals
During the year, Ranbaxy reached an

agreement with Takeda Pharmaceutical
Company Limited and Takeda
Pharmaceuticals North America,
resolving patent litigation related to
Ranbaxys generic equivalent version
of Actos (Pioglitazone
Hydrochloride) 15 mg, 30 mg and
45 mg tablets. Under the terms of the
agreement, Takeda granted Ranbaxy a
non-exclusive royalty free license to its
U.S. patents covering Actos.
This allows Ranbaxy to launch its
generic equivalent formulation on
August 17, 2012 or earlier under
certain circumstances.
Ranbaxy bolstered its presence in the

Dermatology segment by introducing
the New Chemical Entity (NCE),
Luliconazole under the brand name
Lulifin, in India, through a strategic
in-licensing agreement with Summit
Pharmaceuticals International
Corporation, Japan. Lulifin, a novel
topical Imidazole, available as topical
cream has generated encouraging
response from the medical fraternity.
Ranbaxy will enhance its presence in
the Dermatology segment by
introducing this NCE in Malaysia,
South Africa, Singapore & UAE.
Ranbaxy has a range of WHO

Prequalified Anti-Retroviral (ARV)
products that are offered in over
80 countries. The global ARV sales
showed healthy growth, retaining a
presence in the major global funded
programs in 2010. In addition, through
its Joint Venture company, Sonke in
South Africa, Ranbaxy won a
significant portion of the prestigious
two year tender, which aims to treat
close to 2 million patients over the next
couple of years.
Risedronate, used for prevention and

treatment of Osteoporosis was
introduced on Day-1 in France,
Netherlands, UK and Sweden.
Keteroloac continues to lead this

therapy area for Ranbaxy. Other
products like Paracetamol,
Aceclofenac and combinations
Ranbaxy capitalised on the Day-1

launch of Losartan and its combination
with Hydrochlorothiazide, in France,
Italy and Ireland. Losartan was also a
Day-1 launch in Germany, Netherlands
and UK. Losartan combination was
launched on Day-1 in Spain.
Musculoskeletal
23
During the year, two new ARV filings

were made with WHO and the US
FDA under the PEPFAR program.
The company also has a range of
Pediatric and Fixed Dose
Combinations based on the new
recommendations for ARV treatment
in resource limited settings.
The WHO recommendation of D4T

Switch to other treatment regimes is
now in the roll out phase and offers
Ranbaxy a good opportunity to
increase its presence in the Zidovudine
based Fixed Dose Combination.

As per current estimates, more than
1 Million patients across the world
would be using a Ranbaxy drug for
their daily need of ART, in 2011.
Top Ten Therapy Areas in 2010
Top Ten Molecules in 2010
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Anti-infectives
Cardiovasculars
Gastroenterology
Analgesics
Central Nervous System
Dermatology
Respiratory
Endocrinology
Orthopedics
Urology
Information
Technology
Information Technology continued to
enable the organisation to implement,
manage and improve sustainability and
growth programs, as well as, improve
business efficiency.
David Briskman
Vice President and CIO
The expansion of the enterprise SAP

platform continued with the successful
ERP deployment in Russia. More than
90% of Ranbaxy business currently
runs on a single global platform.
To strengthen compliance, the
pharmaceutical industry standard
Trackwise system was implemented
for CAPA- Corrective and Preventive
Action management to automate key
quality processes across the enterprise.
24
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Valacyclovir
Simvastatin
Donepezil
Atorvastatin and Combinations
Co-amoxyclav and Combinations
Ciprofloxacin and Combinations
Ketorolac Tromethamine
Imipenem+Cilastatin
Ginseng+Vitamins
Loratadine and Combinations
In addition, a global regulated content

management solution, Documentum,
was implemented to manage regulated
documents across manufacturing, R&D
and regulatory functions in India and
the US.
During the year, human capital
management was also strengthened
with the implementation of an
e-learning management system across
manufacturing locations in India.
Enhancing sales force effectiveness,
the mPrompt mobile device Sales
Force Automation system was
successfully deployed across India,
Nepal, Middle East, Sri Lanka &
Nigeria sales force.
The Hybrid Business Model remains as one of the core

strategy elements for Ranbaxy. On the manufacturing side,
KAIZEN was introduced, resulting in improvements in
productivity, quality and reduction in the Out-OfSpecification rate of products.
Synergies with
Daiichi Sankyo
The Hybrid Business Model remains as
one of the core strategy elements for
Ranbaxy. The year 2010 witnessed
momentum in this area. Among the
various collaboration projects that were
set in motion, the CMC (Chemistry,
Manufacturing and Control) represents
fast progression. Necessary
amendments were made to comply
with GMP standards for clinical trial
compounds and the pilot
manufacturing of some APIs as well as
intermediates for innovative drugs,
were completed and shipped to Daiichi
Sankyo (DS), Japan. Collaboration is
expected to further strengthen and
expand in these areas.
On the manufacturing side, 'KAIZEN'
was introduced, resulting in
improvements in productivity, quality
and reduction in the Out-OfSpecification rate of products.
One of the most important
developments in 2010 was the
approval received from the Department
of Scientific and Industrial Research,
Govt. of India, for the transfer of
NDDR assets to Daiichi Sankyo India
Pharma Pvt. Ltd.
Many other front-end and back-end
opportunities were also explored
during the year.
In India, Ranbaxy launched the
innovative Anti-platelet drug, Prasita
(Prasugrel) after the successful
introduction of Olmesartan Medoxomil
(Olvance). Collaborative efforts

continued in Romania, and some
countries of Africa, with Ranbaxy
being the front end to market DS
innovator products. Market
Authorisation for Tavanic
(Levofloxacin), an innovative
antibiotic of DS, was transferred from
Sanofi-Aventis to Ranbaxy in
Romania. Tavanic (Levofloxacin
tablets and injections) were launched in
Romania in August 2010. In South
Africa, a similar arrangement will be
made, in January 2012.
The companies are exploring
synergistic possibilities in other
regions including LATAM and
ASEAN.
In Japan, DS established a new entity
Daiichi Sankyo Espha Co. Ltd.
(DSEP), to market generic medicines.
Going forward, Ranbaxy will have the
opportunity to develop, manufacture
and supply products in Japan through
DSEP.
At the back-end, some of the
opportunities leveraged included the
consolidation of business in Thailand,
through an arrangement with a toll
manufacturing party. DS Europe and
Ranbaxy are also working on possible
cost synergy opportunities in
procurement. Similar analysis has been
made for the Daiichi Sankyo Inc. (U.S.
subsidiary of DS) and Ranbaxy. As a
function, synergies in Information
Technology procurement and
implementation were also studied.
The Corporate Social Responsibility
(CSR) teams of DS and Ranbaxy are
25
Hiroyuki Okuzawa
Head - Global Hybrid Business
working together to strengthen CSR

objectives between the two Companies,
for the 2nd Mid Term Plan.
In order to further strengthen the
collaboration between Ranbaxy and
DS, a Global Hybrid Business Office
was set up. This was formerly known
as the Synergy Office. The team will
work in concert with the Corporate
Strategy staff in DS, Tokyo, to explore
synergies and implement the Hybrid
Business Model.
RESEARCH &
DEVELOPMENT
Innovation & Excellence
Dr. Sudershan Arora

President - Research & Development
n July 2010, Ranbaxy realigned its Research &

Development activity by transferring its New Drug
Discovery Research (NDDR) to Daiichi Sankyo India
Pharma Pvt. Ltd.
The strategy will enable the company to increasingly
concentrate in R&D of Generics with a sharper focus in
developing the much needed complex and value added
products. While NDDR will become an integral part of Daiichi
Sankyo, Ranbaxy will retain and develop select molecules.
Pharmaceutical Research (Drug Products)
During the year, the company launched 81 products in India of
which 24 were developed in-house, 53 were out-sourced and
4 were in-licensed.
In USA, the company submitted 12 ANDAs, including
1 PEPFAR-ANDA.
In European Union, the company made 12 National Filings for
10 products (including 1 in-licensed product), filed 13
products under De-Centralized Procedure and 2 products under
Mutual Recognition Procedure.
Ranbaxy also made 16 filings in Russia / CIS countries, 4 in
Australia, 8 in Brazil (including 5 branded filings), 13 in
Canada and 8 in South Africa. In other key markets, the
company made 90 filings.
26
The company made significant progress in its potential

Anti-malarial molecule. The combination product (Arterolane
Maleate and Piperaquine Phosphate) is undergoing Phase III
studies in adult patients with P.falciparum malaria in India,
Thailand and Bangladesh.
During the year, the team filed 25
patents in India, including 6 patents in
Novel Drug Delivery Systems
(NDDS). In addition, 1 patent was also
filed in USA in the area of NDDS.
Chemical Research (Active
Pharmaceutical Ingredients)
The emphasis continued to be towards
developing novel (non-infringing/
patentable) process know-how and
development of new polymorphic
forms of APIs. Consequently,
technology transfer was completed for
10 new APIs and Key Intermediates,
and scale-up studies were completed
for 7 other new APIs. The company
also filed 142 Drug Master Files
comprising 39 APIs across various
countries and 42 patents in India.
Development of New Chemical
Entities
In the area of NDDR, Ranbaxy
continues to develop two molecules
viz. Anti-malaria and COPD.
The company made significant
progress in its potential Anti-malarial
molecule. The combination product
(Arterolane Maleate and Piperaquine
Phosphate) is undergoing Phase III
studies in adult patients with
P.falciparum malaria in India,
Thailand and Bangladesh.
It is also undergoing Phase II studies in
pediatric patients in India.
Ranbaxy has also received approval

from the Drugs Controller General of
India (DCGI) for conducting Phase II
studies with P. vivax malaria in India.
These studies are expected to
commence in later part of 2011.
Matrix Metalloproteinase Dual
(MMP-9 and MMP-12) Inhibitor for
COPD
The company also completed Phase-I
Studies in India on RBx-10017609, a
potential candidate in the Respiratory
segment. The molecule has been found
27
to be well tolerated and safe in elderly

male and female subjects.
The company also completed Food
Effect study in Romania. The molecule
was found to be well tolerated and safe
in adult healthy subjects when
administered with or without food.
An Investigational New Drug (IND)
application with DCGI for initiation of
Phase-II clinical studies in India has
been filed and the company plans to
begin Proof of Concept Study in
patients in 2011.
Table-1: International Regulatory Filings and

Approvals Dosage Forms (Jan-Dec 10)
Table-2: International DMF Filings and

Approvals APIs (Jan-Dec 10)*
Markets
Markets
USA
Europe
- National
- MRP
- DCP
Other Key Markets
Australia/ New Zealand
Brazil
Canada
China
Japan
Russia/CIS
South Africa
Other markets
Total
Approvals
Filings
3
35
23^
3
9
12#
27
12*
2
13
3
4
2
4
11
99
161
4
8##
13
16
8
90
178
#
including 1 PEPFAR filing
##
including 5 branded filings
* 10 products corresponds to 12 filings (including 1 in-licensed
product filing)
^ 20 products corresponds to 23 approvals (including
5 in-licensed product approvals)
Approvals
(# of APIs)
USA
1 (1)
Canada
3 (3)
Europe
134 (21)
Australia / New Zealand 4 (4)
Brazil
1 (1)
Russia (including Ukraine) 2 (2)
South Africa
6 (6)
Other Markets
23 (13)
Total
174 (33)
*
Filings
(# of APIs)
10 (10)
3 (3)
58 (15)
3 (3)
3 (3)
2 (2)
63 (19)
142 (39)
Doesn't include re-registrations & outsourced APIs

DMF: Drug Master File
Table-3: Patent Application Filings and Acceptance/Grant

(Jan-Dec 10)
Category
APIs
Dosage Forms
NDDS
NCEs
Packaging
Analytical
Development
Total
Filings*
India USA Total
42
42
19
19
6
1
7
11
11
5
5
1
1
84
85
Accepted /
Granted Patents**
India USA Total
1
1
4
4
0
These are 1st time (fresh) filings; not international or national filings of
earlier applications filed in India
**
These are unique patents - means any equivalent patents granted in other
countries or patents published under PCT have not been counted
(during 2010, 22 patents were published under PCT)
28
GLOBAL
QUALITY
World of Excellence
Dale Adkisson
Senior Vice President - Global Quality
n 2010, Ranbaxy initiated a Working Committee to define,

design and implement a new Global Quality Organisation
Program and Management Structure. A globally represented joint
Quality Assurance (QA) Team of Ranbaxy and Daiichi Sankyo was
formed to design and implement an enhanced and strengthened
Ranbaxy QA/GMP management system. The re-organised Ranbaxy
global quality assurance management structure was implemented in
August 2010 along with several other initiatives undertaken during the
year to support the global harmonisation of practices for optimising
and strengthening our global quality and compliance systems.
The company has completed seven consecutive successful US FDA
inspections since 2009 with four of these inspections coming in 2010
in India, Europe and the United States facilities. In addition, more
than 47 national level regulatory agency inspections have been
successfully completed at various global manufacturing sites by the
following regulatory agencies: South Africa, World Health
Organization (WHO), European Union Countries/EMEA (Poland,
United Kingdom, Ireland, Romania, France, Germany), Brazil,
Australia, Korea, China, Malaysia, Singapore, Gulf Cooperation
Council (GCC), Canada, Kenya and India.
Ranbaxy, with strong cooperation from Daiichi Sankyo, continues
routine and open dialogue with the US FDA to advance the
successful, comprehensive resolution of its pending regulatory issues.
29
GLOBAL HUMAN
RESOURCES
Diverse Cultures.
One Vision.
Bhagwat Yagnik
President & Head - Global Human Resources
eople first. Once this philosophy is woven into the

fabric of the organisation, it gives the company
inherent resilience to adapt to change. It has been
Ranbaxy's endeavour to bring to life, this simple yet powerful
belief. During the year, diverse structural and organisational
changes were made that led to a reorientation of the company's
priorities and the emergence of some new strategies for 2011.
These included:
Fostering Ranbaxy Culture Merging cultures to align
synergies and perform as ONE TEAM
Ranbaxy Performance Ecosystem Raising the BAR
Enabling Performance Process driven development
We are at the threshold of carving our place at the forefront of
the global pharmaceutical industry and the Daiichi SankyoRanbaxy partnership is a groundbreaking confluence that gives
our company extraordinary advantages. It demands cultural
and operational integration to avail of individual strengths and
to drive synergy, strategic planning and execution with due
diligence. Success is defined through evaluation metrics that
measure results. Our umbrella strategy to foster a Ranbaxy
culture, is crafted on this premise. The central theme is to
provide a platform for change in small persistent steps focused
on people, performance and process, that will bring about the
necessary assimilation of cultures.
30
It has been Ranbaxy's endeavour to build an enabling culture

for people to perform and develop to their full potential.
Putting people first is our foremost focus and will remain so in
all our initiatives.
In our continuous and conscious effort
to celebrate success, we have devised
processes to recognise exceptional
contributions across the globe.
The Global Appreciate Awards are
exemplary in this respect. In their
fourth consecutive year, the Global
Appreciate Awards are a most
important part of recognising
individuals and teams for their
exceptional contributions, from across
the globe. These awards continue to be
the mainstay of our reward and
recognition policy.
Our global presence gives us the
opportunity to develop future leaders
through exposure to international
complexities, across geographies.
This helps us to develop a robust pool
of global managers and leaders with an
understanding of cross border market
dynamics. We also have an active plan
to energise key markets with leadersin-the-making having the right
potential, skill, experience and attitude.
Succession management at Ranbaxy
lays special focus on competency
mapping for core and critical positions.
This helps to identify and build a
strong line of leadership. In tandem,
we have also instituted leadership
development, training and coaching
initiatives. To sustain a culture of
empowerment and autonomy, we have
continued to focus on enriching roles
and responsibilities at every position.
We also encourage our people to act in

an entrepreneurial manner and take
measured risks.
A culture of performance is established
by challenging people around a higher
sense of purpose. In line with this
philosophy, Ranbaxy has increased
performance differentiation globally.
Our performance ecosystem is an
approach that fosters dynamic
interaction with different entities to
improve and develop adaptive
behaviour that is focussed on achieving
results and improvement in
performance.
It has been the company's goal to be
the best in the market through globally
consistent processes that respect local
requirements. In 2010, Ranbaxy
initiated the harmonisation of several
global level processes and policies. We
re-established benchmark parameters
towards compensation, position
profiling, to strengthen our reward
guidelines. For the year ahead, the
company has planned rigorous
benchmarking exercises in several
31
functional and operation areas that will

be trend setters in the industry.
Ranbaxy's primary focus is on
facilitating business goals however,
the crucial aspect is, how we achieve
them? What is our code of conduct?
Work is a creative process of selfdevelopment and working with ethical
principles of professionalism
stimulates well being both for the
individual and the organisation.
It forms the basis of our work culture.
During the year, several training and
appreciation workshops were
conducted on the essence of our Code
of Conduct and the need to follow it
diligently.
It has been Ranbaxy's endeavour to
build an enabling culture for people to
perform and develop to their full
potential. Putting people first is our
foremost focus and will remain so in
all our initiatives. This will not just
address business challenges and
mitigate risk, but will also create a
culture of excellence and
accountability.
CORPORATE SOCIAL
RESPONSIBILITY AND
ENVIRONMENT HEALTH
& SAFETY
Touching Life with Care
Ramesh L Adige
President - Corporate Affairs &
Global Corporate Communications
t Ranbaxy, we believe that Corporate Social

Responsibility is a commitment to contribute to the
economic development of the local community and
society. Over the years, our level of engagement with the
communities has been transformed from charity and
dependence to empowerment and partnership. The focus is on
people-centric initiatives with active community participation
at all levels.
Our endeavour is to touch the lives of many more people by
introducing innovative programs and schemes in education,
healthcare, rural development and environment protection.
Our social initiatives are implemented under the aegis of an
independent society, Ranbaxy Community Healthcare Society
(RCHS) that traces its roots to 1979.
In 2010, we provided primary healthcare services to
communities around our manufacturing facilities, in India.
The thrust was on maternal care, newborn and child health, in
addition to family planning, reproductive and adolescent
health, health education and AIDS awareness. Presently, under
this initiative we cover over 200,000 people in 100 rural and
urban slum areas in Punjab, Haryana, Himachal Pradesh,
Madhya Pradesh and Delhi.
During the year, 24 new service areas were added. There was
an improvement in all general health indicators like
immunisation and Vitamin A prophylaxis coverage,
malnutrition, family planning, tetanus coverage etc. One of the
major achievements of RCHS was attainment of zero maternal
mortality in the areas served. It has indeed become a turning
point in our battle to keep mothers in good health through
32
Ranbaxys special efforts and significant focus on reducing Child

Mortality, Improving Maternal Health and Combating HIV/AIDS,
Malaria and other neglected diseases tie in seamlessly with the
Millennium Development Goals set forth by the United Nations
Development Programme (UNDP).
periods of pregnancy and child birth.
Diarrhoea, which was a killer disease
among children, is not a serious threat
now. In our area of coverage, there was
no infant death due to Diarrhoea during
the year. RCHS continued its drive to
address issues relating to the
prevention of Malaria, Tuberculosis,
Dengue, AIDS, Female Foeticide and
life style diseases.
The overall impact of services in the
old and new areas taken up during the
period 1998 to 2010, has been very
positive. The Infant Mortality Rate
(IMR) has declined substantially from
27.8 per 1000 live births in 1998 to
16.3 in 2010. The Birth Rate (BR) has
also shown a steady fall from 18.1 per
1000 population in 1998 to 11.4 in
2010. It is very satisfying that the
results in our service areas are much
better than the national statistics.
This is primarily a result of our
scientific approach in targeting issues
at the grass root level.
Separately, Ranbaxys CSR movement
was strengthened with the roll out of
our Public Private Partnership (PPP)
program with the Punjab State
Government. It was flagged off on July
17, 2010 by Shri Parkash Singh Badal,
Chief Minister of Punjab. As part of
this program, Ranbaxy will be offering
free medical and primary healthcare
services to about 400,000 people in
166 villages through 40 service
delivery outlets in the districts of
Bathinda, Muktsar and Mansa in
Punjab. In the first phase, 8 fully
equipped mobile health care vans have
been introduced under the banner
Ranbaxy Sanjeevan Swasthya Seva.
A total of 43 personnel including 17
Doctors and 16 Paramedics are
devoted full time, to this community
healthcare program, which focuses on

the prevention and early detection of
commonly found cancers in women
and men. An awareness campaign on
cancer control has also been rolled out
and special camps on Hypertension,
Diabetes, Skin and Family Welfare are
being organised.
It is a matter of pride that Ranbaxys
special efforts and significant focus on
reducing Child Mortality, Improving
Maternal Health and Combating
HIV/AIDS, Malaria and other
neglected diseases tie in seamlessly
with the Millennium Development
Goals set forth by the United Nations
Development Programme (UNDP).
In 1994, we unleashed a major
initiative to encourage and reward
Indian scientists for excellence in
medical and pharmaceutical research
through the Ranbaxy Science
Foundation (RSF). These awards are
well accepted in the medical fraternity
and as of now, RSF has bestowed the
honour on 126 scientists and 17 young
and brilliant science scholars. In 2010,
RSF felicitated 3 scientists and 4
science scholars. In addition, Symposia
and Round Table Conferences were
organised on topics related to New
Frontiers in Drug Design, Discovery
and Development, polio eradication
and sleep disorders.
33
Environment, Health and Safety

(EHS)
It is our endeavour to always act in a
safe and environmentally responsible
manner so that the employees, the
community at large and the
environment including the natural
resources, are well protected.
The companys Corporate
Environmental, Health and Safety
(EHS) standards and guidelines
provide technical advice, support and
assistance to all the sites on EHS
matters. During the year, the EHS
function ensured that the products were
manufactured in compliance with
national and local regulations. As a
prudent practice, the Corporate EHS
Committee reviewed the EHS
performance for 2010, including new
initiatives taken, challenges faced and
Action Plans drawn.
Environment
We recognise that preservation of the
environment is vital and we remain
committed to conserving resources and
acting responsibly. All our
manufacturing sites remained fully
compliant with applicable
environmental regulations.
In compliance with the new European
CLP (Classification, Labeling and
Access to Medicine
(ATM) Foundation, a
Netherlands-based
non-profit organisation,
ranked Ranbaxy as the
world-wide industry
leader under the
generics category for
improving access to
needed medicines.
Packaging) & REACH (Registration,

Evaluation, Authorisation and
Restriction of Chemicals) Regulations,
significant progress was made towards
the development and issue of CLP &
REACH compliant Material Safety
Data Sheet and product labels of the
Active Pharmaceutical Ingredients for
our customers in the European Union.
Our Malanpur API manufacturing site
in Madhya Pradesh was granted
ISO14001 certification and other key
manufacturing sites at Toansa, Dewas
and Mohali ensured continuity of
ISO14001 certification.
Various initiatives were undertaken to
up-grade the infrastructure for
environmental management at our
manufacturing sites in India.
At Toansa, all Solar Evaporation
Ponds were phased out by using the
Thermal System (Multi Effect thermal
Evaporators / Agitated Thin Film
Dryers / Spray Dryers). A similar
Thermal System was commissioned at
Dewas to treat High TDS/COD
effluents. In our efforts to reduce the
Carbon Footprint, a fuel switch from
Furnace oil to Liquefied Natural Gas
(LNG) was done for the Dewas
facility.
Making us proud, Ranbaxy Nigeria
was awarded the Lagos State Green
Environmental Assessment Award for
excellence in environmental initiatives
and practices.
Occupational Health and Safety
The company undertook numerous
initiatives to enhance safety at the
34
workplace. As an acknowledgement of
our efforts, the Toansa facility received
the 2nd prize at the Punjab State Safety
Awards. Toansa also successfully
completed the Occupational Health and
Safety Management System (OHSMS)
audit, and received the OHSAS 18001
certification. Our Mohali API
manufacturing site underwent a
successful external safety audit by the
National Safety Council.
A Walk Through Survey was
conducted by an external consultant at
all our API Manufacturing sites to
assess the current status and suggest
additional requirements for
Respiratory/ Hearing / Eye / Head
protection / Spill control and gas
detection.
Access to Medicines
The highlight of the year was the
recognition we received from Access
to Medicine (ATM) Foundation in
improving access to medicines. The
Foundation, a Netherlands-based nonprofit organisation, ranked Ranbaxy as
the world-wide industry leader under
the generics category for improving
access to needed medicines. ATM is a
global initiative to improve access to
medicines to societies in need,
worldwide. It ranks drug makers on
their social responsibility with regard
to supplying the developing and
underdeveloped countries with
medicines for key neglected disease
areas.
Corporate
Governance
ReportOn
Ranbaxy Laboratories Limited
1. THE COMPANYS PHILOSOPHY ON CODE OF CORPORATE GOVERNANCE

In order to ensure sustainable returns to all stakeholders of the business, it is imperative, especially for large
organizations, to adopt and follow certain policies, procedures and processes, which together constitute a Code of
Corporate Governance. It is important that such a Code is institutionalized, to ensure transparency, consistency
and uniformity of decision making processes and actions. Ranbaxy has always believed in such a Sound Code
of Corporate Governance, as a tool for highest standards of management and business integrity.
2. BOARD OF DIRECTORS
The details of Directors on the Board of the Company as on December 31, 2010 are as under:
Name of the Director
Dr. Tsutomu Une,

Chairman
Mr. Takashi Shoda
Dr. Anthony H. Wild
Mr. Akihiro Watanabe
Mr. Percy K. Shroff
Mr. Rajesh V. Shah
Mr. Arun Sawhney,
Managing Director
Category
Non-ExecutiveNon-Independent
-doNon-ExecutiveIndependent
-do-do-doExecutive
Number of
Number
Number of
Directorships
of Board
Chairmanship
held in other
Committee
of Board
companies @ memberships Committees
held in other held in other
companies ^
companies^
@ Excludes private and foreign companies and companies registered under Section 25 of the Companies Act, 1956.
Includes only the membership of Audit and Shareholders/Investors Grievance and Share Transfer Committees of
Indian public limited companies.
Notes:
1) At the Board Meeting held on August 12, 2010, Mr. Atul Sobti stepped down as CEO and Managing Director
effective August 19, 2010 and Mr. Arun Sawhney was appointed as Managing Director of the Company
effective August 20, 2010 subject to the requisite approval of the shareholders.
2) None of the Directors are related inter-se.
3. BOARD MEETINGS

Dates of Board meetings are fixed in advance and agenda papers are circulated to Directors in advance.
Meetings and Attendance
During the year 2010, four Board Meetings were held: February 24-25, May 11, August 12 and November 11,
2010.
Attendance of Directors at Board Meetings and at the Annual General Meeting (AGM)
No. of Board
Whether Attended the
Meetings attended
AGM held on May 10, 2010
Dr. Tsutomu Une
4
Yes
Mr. Takashi Shoda
2*
Yes
Dr. Anthony H. Wild
4
Yes
4
Yes
Mr. Percy K. Shroff
3
Yes
Mr. Rajesh V. Shah
4
Yes
Mr. Arun Sawhney
1
N.A.
Mr. Atul Sobti
3
Yes
*Mr. Takashi Shoda participated in the Board meeting held on February 24-25 through tele-conference.
36
4. COMMITTEES OF THE BOARD

(i) Audit Committee
The Audit Committee has been constituted as per Section 292A of the Companies Act, 1956 and the guidelines
set out in the Listing Agreements with the Stock Exchanges. The terms of reference include Overseeing financial reporting processes.
Reviewing periodic financial results, financial statements and adequacy of internal control systems.
Approving internal audit plans and reviewing efficacy of the function.
Discussion and review of periodic audit reports.
Discussions with external auditors about the scope of audit including the observations of the auditors.
Recommend to the Board appointment of the statutory auditors and fixation of audit fees.
Reviewing with the management, the statement of uses / application of funds raised through an issue (public,
rights, preferential issue of securities etc.)
Reviewing with the management the performance of statutory and internal auditors.

Minutes of meetings of the Audit Committee are circulated to members of the Committee and the Board.
Composition and Attendance
During the year 2010, four meetings of the Audit Committee were held on February 24, May 10, August 11 and
November 10, 2010. The composition of the Committee and details of the meetings attended by the members
during the year are as under:
Name of the Member
Mr. Akihiro Watanabe, Chairman
Dr. Tsutomu Une
Dr. Anthony H. Wild
Mr. Percy K. Shroff
Mr. Rajesh V. Shah
Permanent Invitees
Mr. Atul Sobti*
Mr. Arun Sawhney**
No. of Meetings attended

4
4
4
3
4
3
1
Note: Mr. Takashi Shoda attended 3 meetings as an invitee.

*Ceased w.e.f.. August 19, 2010
**Inducted w.e.f. August 20, 2010

Members of the Audit Committee have requisite financial and management expertise and have held or hold senior
positions in reputed organizations.
The Statutory Auditors, Internal Auditor and the Chief Financial Officer are invited to attend and participate at
meetings of the Committee.

The Company Secretary acts as the Secretary to the Committee.
The Chairman of the Audit Committee was present at the Annual General Meeting held on May 10, 2010.
(ii) Compensation Committee

The Compensation Committee has been constituted as per the provisions set out in the SEBI (Employee Stock
Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999. The terms of reference include
Administration and superintendence of Employee Stock Option Schemes (ESOS).
Formulation of the detailed terms and conditions of the ESOS.
Grant of stock options.
Recommendation for fixation and periodic revision of compensation of the Managing Director and Executive
Directors to the Board for approval and review and approve compensation policy (including performance
bonus, incentives, perquisites and benefits) for senior management personnel.
37
Minutes of meetings of the Compensation Committee are circulated to members of the Committee and the
Board.
During the year 2010, Two meetings of the Compensation Committee were held on February 24 and August 11,
2010. The composition of the Committee and details of the meetings attended by the members during the year
are as under:
Name of the Member
Mr. Rajesh V. Shah, Chairman
Dr. Tsutomu Une
Mr. Percy K. Shroff
Dr. Anthony H.Wild
Permanent Invitees
Mr. Atul Sobti*
Mr. Arun Sawhney**

2
2
1
2
2
N.A.
*Ceased w.e.f. August 19, 2010

**Inducted w.e.f. August 20, 2010

Remuneration Policy
The Remuneration Policy of the Company for managerial personnel is primarily based on the following criteria:
- Performance of the Company, its divisions and units.
- Track record, potential and performance of individual managers and
- External competitive environment.

Remuneration of Directors
Remuneration of Executive Directors is decided by the Board based on recommendations of the Compensation
Committee as per the remuneration policy of the Company, within the ceiling fixed by the shareholders. The
details of the remuneration of Executive Directors for the year ended December 31, 2010 are as under:
Name of the
Director
Salary &
Allowances
Commission/ Perquisites
Performance
Bonus
Mr. Atul Sobti
331.19
3.58
Mr. Arun
Sawhney
219.14
237.75
6.82
Retiral
Benefits
Stock
Options
Tenure
Service Contract
9.47
50,000
N.A.
19.16
15,000
3 years
Notice Period
& Severance
Fee
-------------------- Rs. Lacs ----------------------N.A.

6 months
Notes:
1. Remuneration of Mr. Atul Sobti is for the period from 1.1.2010 to 19.8.2010, the day he stepped down as
CEO & Managing Director of the Company.
2. Remuneration of Mr. Arun Sawhney is for the period from 1-1-2010 to 19-8-2010 as President-Global
Pharmaceutical Business and for the period from 20-8-2010 to 31-12-2010 as Managing Director.
3. Remuneration of Executive Directors consists of fixed component and commission which is linked with the
profit of the Company.
4. Retiral benefits are exclusive of provision for future liabilities in respect of retirement benefits (which are based
on actuarial valuation done on overall Company basis).
5. The closing market price of the share of the Company listed at National Stock Exchange of India (NSE) on
February 23, 2010 was Rs. 449.60. Hence the aforesaid options were not granted at a discount. Further, the
said options granted to Mr. Sobti have since lapsed consequent to his stepping down as CEO & Managing
Director of the Company.
38
Remuneration to Non-Executive Directors

Remuneration to Non-Executive Directors comprises commission and sitting fees. The shareholders of the
Company at their Annual General Meeting held on May 29, 2009 approved the payment of commission to
Non-Executive Directors not exceeding 1% of the net profits of the Company as computed under the relevant
provisions of the Companies Act, 1956. The Board of Directors determines the commission payable to the NonExecutive Directors keeping in view the independent status, contribution at the Board and Committee meetings
and responsibilities considering the extensive global operations of the Company.
Details of remuneration paid to the Non-Executive Directors for the year ended December 31, 2010 are as under:

Non-Executive Directors
Commission
(Rs. Lacs)
Sitting Fees
(Rs. Lacs)
50
2.30
Mr. Takashi Shoda
50
0.60
Mr. Rajesh V. Shah
100
2.00
Mr. Percy K. Shroff
100
1.75
Dr. Anthony H. Wild
100
2.20
100
1.60
Dr. Tsutomu Une
None of the Non-Executive Directors holds any shares in the Company.

(iii) Science Committee
Terms of Reference of Science Committee include review focus areas of research and monitoring progress on
generic development.
Minutes of meetings of the Science Committee are circulated to members of the Committee and the Board.

During the year 2010 one meeting of the Science Committee was held on August 11, 2010. The composition of
the Committee and attendance of the members at the said meeting is as under:
Name of the Member
Dr. Tsutomu Une, Chairman
Mr. Takashi Shoda
Dr. Anthony H. Wild
Mr. Arun Sawhney*
N.A.
Mr. Atul Sobti**
Permanent Invitee
Dr. Sudershan K. Arora- President-R&D
* Co-opted w.e.f. August 20, 2010

**Ceased w.e.f. August 19, 2010
(iv) Shareholders/Investors Grievance and Share Transfer Committee
The Shareholders/Investors Grievance and Share Transfer Committee has been constituted as per the provisions
set out in the Listing Agreement. The terms of reference include
Approve transfers, transmissions, issue of duplicate certificates, transpositions, change of names etc., and to do
all such acts, deeds, matters and things as connected therein.
Review complaints of the shareholders and action taken by the Company.

Minutes of meetings of the Shareholders/Investors Grievance and Share Transfer Committee are circulated to
members of the Committee and the Board.
39
During the year 2010, seven meetings of the Committee were held on January 18, April 5, July 15, August 3,
September 10, October 20 and December 1, 2010. The composition of the Committee and attendance of the
members at the said meeting is as under:
Name of the Member
Mr. Percy K. Shroff, Chairman
Dr. Tsutomu Une
Mr. Arun Sawhney*
Mr. Atul Sobti**
* Co-opted w.e.f. August 20, 2010

**Ceased w.e.f. August 19, 2010
The Company addresses all complaints, suggestions and grievances expeditiously and replies have been sent/issues
resolved usually within 15 days except in case of dispute over facts or other legal constraints.

During the year, the Company received 35 shareholders complaints which inter-alia include non-receipt of
dividend, annual report, split shares, non-receipt of share certificates etc. The complaints were duly attended to
and the Company has furnished necessary documents/information to the shareholders. As of December 31, 2010,
all the complaints have been resolved except one which is sub-judice.
The Shareholders/Investors Grievance and Share Transfer Committee reviews complaints received and action
taken by the Company in this regard.
No requests for share transfers are pending except those that are disputed or sub-judice.

Mr. S. K. Patawari, Company Secretary is the Compliance Officer of the Company.
5. GENERAL BODY MEETINGS

Details of the General Meetings held in the last three years:
I. Annual General Meeting

Year
Date
Day
2008
30-5-2008
Friday
Time
Venue
11.00 A.M. The National Institute

of
Pharmaceutical
Education & Research,
Sector
67,
S.A.S.
Nagar, Punjab
40
Special Resolutions Passed

-Appointment of Dr. Brian W.
Tempest as an Advisor to
Ranbaxy Europe Ltd., a wholly
owned subsidiary of the Company
for a period of three years effective
January 1, 2008.
- Approval for amendment in
Employees Stock Option Scheme(s)
of the Company to provide that Stock
Options granted and outstanding in
the hands of the employees who may
be transferred to any entity affiliated
to the Company would vest on the
date of transfer of such employees
provided one year has elapsed
between the date of grant of stock
options and date of such transfer.
Year
Date
Day
2009
29-5-2009
Friday
2010
10-5-2010
Monday
Time
Venue
11.00 A.M. The National Institute

of
Pharmaceutical
Sector
67,
S.A.S.
Nagar, Punjab
Special Resolutions Passed

Approval under Section 309(4) of the
Companies Act, 1956 for payment
of commission to the Non-executive
Directors of the Company, not
exceeding one percent of net profits
of the Company in the aggregate for
all the Non-executive Directors in
a financial year for a period of five
years commencing from January 1,
2009.
11.00 A.M. The National Institute No Special Resolution passed.

of
Pharmaceutical
Sector
67,
S.A.S.
Nagar, Punjab
II. Extra-ordinary General Meeting

2008
15-7-2008
Tuesday
9.00 A.M. Confederation

of
Indian Industry (CII),
Block No. 3, Sector31 A, Dakshin Marg,
Chandigarh
- Approval under Section 81(1A) of

the Companies Act, 1956 for issue of
Equity Shares and Warrants of the
Company on preferential basis to
Daiichi Sankyo Company, Limited,
Japan.
- Approval for amendment to the
Employees Stock Option Scheme(s)
of the Company to the effect that
maximum number of stock options
that may be granted to individual
management employee in a year be
increased from 40,000 to 3,00,000
6. CODE OF CONDUCT
The Code of Conduct for the Directors and Employees of the Company is posted on the website of the Company.
Declaration as required under Clause 49 of the Listing Agreement
All Directors and Senior Management personnel of the Company have affirmed compliance with the provisions
of the Ranbaxy Code of Conduct for the financial year ended December 31, 2010.
Arun Sawhney
Managing Director
Gurgaon (Haryana)
February 11, 2011
7. Certificate from Managing Director and Director-Global Accounts

Certificate from Managing Director & Director-Global Accounts of the Company, for the financial year ended
December 31, 2010 has been provided elsewhere in the Annual Report.
8. DISCLOSURES
A. Related Party Transactions
The Company has not entered into any transaction of material nature with the promoters, the Directors or
the management, their subsidiaries or relatives etc. that may have any potential conflict with the interests of
the Company.
41
B. Disclosure of Compliances by the Company

During the last three years, no penalties or strictures have been imposed on the Company by the Stock
Exchanges or SEBI or any other statutory authorities on matters related to capital markets.
C. Disclosure of Accounting Treatment

There have not been any significant changes in the accounting policies during the year.
D. Risk Management

The Company has a procedure to inform the Board about the risk assessment and minimization procedures.
The Board of Directors periodically reviews the risk management framework of the Company.
E. The Company has complied with all the mandatory requirements and has adopted non-mandatory
requirements as per details given below:
(1) The Board

The Company maintains the Office of the Chairman at its Corporate Office at Plot No. 90, Sector 32,
Gurgaon-122001 (Haryana) and also reimburses the expenses incurred in performance of his duties.
There is no fixed tenure for Independent Directors.

(2) Remuneration Committee

The Company has constituted Compensation Committee as detailed in 4(ii) hereinabove. The Chairman
of the Compensation Committee is an independent director and was present at the last Annual General
Meeting.
(3) Shareholders Rights

The quarterly financial results are published in the newspapers as mentioned under the heading Means
of Communication at Sl. No. 10 hereinbelow and also displayed on the website of the Company. The
results are not separately circulated to the shareholders.
(4) Audit qualifications
There are no audit qualifications in the Companys financial statements for the year under reference.
(5) Training of Board Members
No specific training programme was arranged for Board members. However, at the Board/Committee
meetings detailed presentations are made by Professionals, Consultants as well as Senior Executives of the
Company on the business related matters, risk assessment, strategy, effect of the regulatory changes etc.
(6) Mechanism for evaluating Non-Executive Board Members

The Company has not adopted any mechanism for evaluating individual performance of Non-Executive
Directors.
(7) Whistle Blower Policy

The Board of Directors of the Company at its meeting held on November 11, 2010 has approved
Whistle Blower Policy of the Company and issuance of the same is under process. Further, no person has
approached the Audit Committee of the Company during the year.
The Company has also laid down a Code of Conduct for all its employees across the Organisation. The
Code of Conduct of the Company lays down that the employees shall promptly report any concern
or breach and suggests not to hesitate in reporting a violation or raising a policy concern to the Code
Compliance Cell or concerned superior. The Code provides that the Company shall support and protect
employees for doing so.
9. CORPORATE GOVERNANCE VOLUNTARY GUIDELINES

In December 2009, the Ministry of Corporate Affairs had issued the Guidelines on the voluntary adoption of
Corporate Governance Practices. The Company follows the Guidelines such as separation of office of Chairman and
Managing Director, taking certificate of independence from Independent Directors, constitution of Remuneration
Committee which determines remuneration policy, providing timely information to Board of Directors for quality
42
decision making, identification of risks, review of internal controls and constitution and functioning of Audit
Committee. While some of these Guidelines like maximum tenure of independent directors, rotation of audit firm
etc. have not yet became due and the Guidelines on payment of remuneration to Independent Directors would
require amendment to the Companies Act. Further, evaluation of Directors, conducting their training etc. are yet
to be adopted by the Company.
10. MEANS OF COMMUNICATION
(a) The Company regularly intimates unaudited as well as audited financial results to the Stock Exchanges
immediately after these are taken on record by the Board. These financial results are normally published in the
Business Standard/Financial Express, the Punjabi Tribune and are displayed on the website of the Company
www.ranbaxy.com. Further in compliance of Clause 52 of the Listing Agreement, the above information and
other communication sent to Stock Exchanges have also been filed under Corporate Filing Dissemination System
(CFDS) and are available at website www.corpfiling.co.in.
The official news releases and the presentations made to the investors/analysts are also displayed on the
Companys website.
(b) Management Discussion and Analysis Report forms part of the Report of the Directors.
11. SHAREHOLDER INFORMATION
Annual General Meeting
Date : May 9, 2011
Time : 11.00 A.M.
Venue : The National Institute of Pharmaceutical
Education and Research (NIPER)
Sector-67, S.A.S. Nagar, (Mohali)- 160 062 (Punjab).
No Special resolution is proposed to be passed by Postal ballot at the aforesaid Annual General Meeting.

Financial Calendar Adoption of Quarterly

Results for the quarter ending
Tentative Schedule
June 30, 2011

September 30, 2011
December 31, 2011
March 31, 2012
1st week of August 2011

2nd week of November 2011
4th week of February 2012
2nd week of May 2012
Book Closure Dates
April 30, 2011 to May 9, 2011 (both days inclusive)

Dividend Payment Date
May 16, 2011
LISTING ON STOCK EXCHANGES
The Equity Shares of the Company as on December 31, 2010 were listed on the Bombay Stock Exchange Ltd.
and National Stock Exchange of India Ltd. Global Depository Receipts (GDRs) are listed on the Stock Exchange
at Luxembourg. Foreign Currency Convertible Bonds (FCCBs) have been listed with the Singapore Exchange
Securities Trading Limited.
The Company confirms that it has paid annual listing fees due to the Stock Exchanges for the year 2010-2011.

STOCK CODE
1. National Stock Exchange of India Ltd.
2. Bombay Stock Exchange Ltd.

- 359 (Physical)
500359 (Demat)
- Ranbaxy
43
SHARE TRANSFER SYSTEM

With a view to expedite the process of share transfers,
the Board of Directors of the Company has delegated
the power of share transfer to some of the Directors with
appropriate individual limits. The delegated Director(s)
attend(s) to the share transfer formalities once in a
fortnight. The shares for transfers received in physical form
are transferred expeditiously, provided the documents
are complete and the shares under transfer are not under
any dispute. The share certificates duly endorsed are
returned immediately to shareholders. Confirmation in
respect of the requests for dematerialisation of shares is
sent to the respective depositories i.e. NSDL and CDSL
expeditiously.
DEMATERIALISATION OF SHARES
The shares of the Company are in compulsory demat
segment and are available for trading in the depository
systems of both NSDL and CDSL. As on December
31, 2010, 413,876,401 Equity Shares of the Company,
forming 98.30 % of the Share Capital of the Company,
stand dematerialised.
International Securities Identification Number INE015A01028 (with NSDL and CDSL)
Shareholding Pattern as on December 31, 2010
REGISTRAR AND TRANSFER AGENTS

M/s. Alankit Assignments Ltd. (Alankit), 2E/8,
1st Floor, Jhandewalan Extension, New Delhi-110 055
is the Registrar and Share Transfer Agent for physical
shares of the Company. Alankit is also the depository
interface of the Company with both National Securities
Depository Ltd. (NSDL) and Central Depository Services
(India) Ltd. (CDSL).
However, keeping in view the convenience of
shareholders, documents relating to shares will continue
to be received by the Company at Corporate Office of
the Company at Plot No. 90, Sector 32, Gurgaon-122001
(Haryana) Tel No. 91-124-4135000, the Companys
Registered Office at A- 41, Industrial Area Phase
VIII-A, Sahibzada Ajit Singh Nagar (Mohali) 160 071
(Punjab), Tel. No. 91-172-5013655 and Head Office
at 12th Floor, Devika Tower, 6, Nehru Place, New
Delhi-110019, Tel. No. 91-11-26237508; email address:
secretarial@ranbaxy.com.
Market Price Data (Rs.)
Bombay Stock National Stock
Exchange
Exchange
(BSE)
(NSE)
High
Low
High
Low
January 2010
533.50 432.35 533.40 432.00
February 2010
476.00 395.10 478.00 394.00
March 2010
491.60 450.00 490.85 426.40
April 2010
485.00 432.70 485.50 431.70
May 2010
469.50 364.20 494.40 403.15
June 2010
463.00 414.35 463.50 413.50
July 2010
467.95 441.10 467.90 441.00
August 2010
500.60 434.55 500.70 434.25
September 2010 579.90 490.00 580.00 489.35
October 2010
620.55 560.00 616.90 556.35
November 2010 624.90 530.50 624.20 530.05
December 2010 599.75 534.00 600.00 532.85
Month
Category
No. of
Percentage of
Shares held Shareholding
(%)
Promoters-Daiichi Sankyo
Company, Ltd., Japan
268,711,323
Mutual Funds & UTI
10,407,611
Insurance Companies
38,348,545
FIIs
34,647,539
Banks & Financial
Institutions
1,266,269
Bodies Corporate
12,577,064
Public shareholding
48,750,123
GDRs
6,332,219
Grand Total
421,040,693
44
63.82
2.47
9.11
8.23
0.30
2.99
11.58
1.50
100.00
Distribution of Shareholding as on December

31, 2010
From - To
No. of
Shareholders
1. A-8-11,
Industrial Area Phase- III,
Sahibzada Ajit Singh Nagar
(Mohali) -160 055 (Punjab)
No. of Shares
Number of
shares
Number
1 - 1000
166,502
94.10
18,296,578
4.35
1001 - 2000
5,540
3.13
7,958,146
1.89
2001 - 4000
2,920
1.65
8,164,600
1.94
4001 - 6000
855
0.48
4,185,964
0.99
6001 - 8000
344
0.20
2,388,633
0.57
8001 - 10000
193
0.11
1,747,040
0.42
10001 - 20000
298
0.17
4,062,348
0.96
20001& above
286
0.16
374,237,384
88.88
176,938 100.00 421,040,693
100.00
5. Village & PO Ganguwala

Tehsil Paonta Sahib 173 025,
Distt. Sirmour (H.P.)
The Equity Shares of the Company have been included

in the Sensex of the leading Stock Exchanges.
6. Village Batamandi
Tehsil Paonta Sahib-173 025
Distt. Sirmour (H.P.)
Total
%
Total
Plant Locations of the Company
Number
%
Total
2. Village Toansa, P.O. Railmajra

Distt. Nawansahar - 144533 (Punjab)
3. A-41, Industrial Area Phase VIII-A
Sahibzada Ajit Singh Nagar
(Mohali) 160 071 (Punjab)
4. Industrial Area 3
A.B. Road, Dewas-450 001,
Madhya Pradesh
Liquidity of Shares
Outstanding Stock Options

Number of Stock Options outstanding
as on December 31, 2010
7. E-47/9, Okhla Industrial Area

Phase-II, Okhla,
New Delhi-110 020
- 7,401,143*
8. Plot No. B-2

Madkaim Industrial Estate,
Ponda, Goa
* Options granted upto October 3, 2002 are entitled for

additional shares on a proportionate basis in view of
issue of bonus shares by the Company in the ratio of 3
for 5 in October 2002.
9 K-5, 6,7, Ghirongi

Malanpur
Dist. Bhind-477 116, (M.P.)
The Company had raised US$440,000,000 in the year

2006 through Zero Coupon Convertible Bonds. The
Bonds are convertible any time on or after April 27,
2006 upto March 8, 2011 by the holders into fully paid
Equity Shares of Rs.5 each of the Company, which may
subject to certain conditions, be represented by Global
Depository Shares (GDS) with each GDS representing
one share at a conversion price of Rs.716.32 per share,
which is subject to adjustment in certain circumstances.
In case if the Bonds are not converted into shares, the
Company will redeem each Bond at 126.765% of its
principal amount on the maturity date i.e. March 18,
2011.
10. Plot No. 1341 & 1342

EPIP-1, Hill Top Industrial Area,
Village-Bhatolikalan (Barotiwala)
Baddi - 174103 (H.P)
Address for Correspondence
Shareholders are requested to contact
Mr. S.K. Patawari
Company Secretary
Ranbaxy Laboratories Ltd.
Plot No. 90, Sector 32, Gurgaon-122001
Haryana
Tel.No. 91-124-4185888, 4135000
Fax No.91-124-4106490
Email address: secretarial@ranbaxy.com
6,332,219 GDRs representing 6,332,219 Equity Shares

of Rs.5 each constituting 1.50% of the issued, subscribed
and paid-up share capital of the Company, were
outstanding as on December 31, 2010.
45
Certificate
To the Members of
We have examined the compliance of conditions of Corporate Governance by Ranbaxy Laboratories Limited
(the Company) for the year ended on 31 December, 2010, as stipulated in Clause 49 of the Listing Agreement of the
Company with stock exchanges.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination
was limited to procedures and implementation thereof, adopted by the Company, for ensuring the compliance of the
conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements
of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the
Company has complied with the conditions of Corporate Governance as stipulated in the abovementioned Listing
Agreement.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency
or effectiveness with which the management has conducted the affairs of the Company.
For B S R & Co.

Chartered Accountants
Registration No.: 101248W

Place : Gurgaon
Dated : 22 February, 2011
Vikram Aggarwal
Partner
Membership No.: 089826
46
Certificate from
MANAGING DIRECTOR
AND
DIRECTOR-GLOBAL ACCOUNTS
To the Board of Directors of Ranbaxy Laboratories Ltd.

We, Arun Sawhney, Managing Director and Ranjit Kohli, Director-Global Accounts certify that :
(a) We have reviewed financial statements and the cash flow statement for the year ended December 31, 2010 and that
to the best of our knowledge and belief :

(i) these statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
(ii) these statements together present a true and fair view of the Companys affairs and are in compliance with
existing Accounting Standards, applicable laws and regulations.
(b) There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year
which are fraudulent, illegal or violative of the Companys Code of Conduct.
(c) We accept responsibility for establishing and maintaining internal controls for financial reporting and have evaluated
the effectiveness of internal control systems of the Company pertaining to financial reporting and we have disclosed
to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any,
of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.
(d) We have indicated to the Auditors and the Audit Committee that
(i) there has not been any significant changes in internal control over financial reporting during the year under
reference;
(ii) there has not been any significant changes in accounting policies during the year requiring disclosure in the
notes to the financial statements; and
(iii) there has not been any instances during the year of significant fraud of which we had become aware and the
involvement therein, if any, of the management or an employee having a significant role in the Companys
internal control system over financial reporting.
Arun Sawhney Ranjit Kohli

Managing Director
Director-Global Accounts
Place : Gurgaon
Date : February 22, 2011
47
BOARDof
Directors
Dr. Tsutomu Une

Chairman
Mr. Takashi Shoda
Dr. Anthony H. Wild
Mr. Percy K. Shroff
Mr. Rajesh V. Shah
Mr. Arun Sawhney
Managing Director
COMPANY SECRETARY
Mr. S. K. Patawari
REGIONAL HEADQUARTERS
Gurgaon [India], London [UK], Johannesburg [South Africa]
New Jersey [USA], Sao Paulo [Brazil]
MARKETING OFFICES
Douala [Cameroon], Kiev [Ukraine], Moscow [Russia], Ho Chi Minh City [Vietnam], Kaunas [ Lithuania]
Nairobi [Kenya], Abidjan [Ivory Coast], Yangon [Myanmar], Beijing [China], Almaty [Kazakhstan]
Dubai [UAE], Harare [Zimbabwe], Casablanca [Morocco], Sofia [Bulgaria]
STATUTORY AUDITORS
BSR & Co., Building No. 10, 8th Floor, Tower-B, DLF Cyber City, Phase II, Gurgaon 122002, Haryana [India]
BANKERS
Credit Agricole CIB, Royal Bank of Scotland NV, Citibank NA, Deutsche Bank AG
Hong Kong & Shanghai Banking Corporation, Punjab National Bank, Standard Chartered Bank
REGISTERED OFFICE
A-41, Industrial Area Phase-VIII-A, Sahibzada Ajit Singh Nagar [Mohali] - 160 071, Punjab [India]
Ph : [91-172] 5013655. Fax : [91-172] 5013376
CORPORATE OFFICE
Plot No. 90, Sector 32, Gurgaon 122 001, Haryana [India]
Ph : [91-124] 4135000. Fax : [91-124] 4135001
HEAD OFFICE
12th Floor, Devika Tower, 6, Nehru Place, New Delhi 110 019 [India]
Ph : [91-11] 26237508. Fax : [91-11] 26225987
48
Report of the
Directors
Your Directors have pleasure in presenting the 50th Annual Report and Audited Accounts for the year ended
December 31, 2010.
STANDALONE Working RESULTS UNDER INDIAN GAAP
Net Sales
Expenditure
Profit Before Tax
Tax charge
Profit After Tax
Balance as per last Balance Sheet
Transfer from Foreign Projects Reserve
Profit available for Appropriation
Appropriations:
Proposed Dividend
Tax on Proposed Dividend
Transfer to General Reserve
Surplus/(Deficit) carried forward
CONSOLIDATED WORKING RESULTS UNDER INDIAN GAAP
Net Sales
Expenditure
Profit Before Tax
Tax Charge
Profit After Tax
Share in Loss of Associates(Net)
Provision for diminution in the value of long term investment in
associates
Minority Interest
Profit For The Year
Balance as per last Balance Sheet
Transfer from Foreign Projects Reserve
Profit Available for Appropriation
Proposed Dividend
Tax on Proposed Dividend
Transfer to General Reserve
Surplus/(Deficit) Carried Forward
Rs. in Million
Year ended
Year ended
December 31, December 31,
2010
2009
52,667.09
45,359.09
51,086.39
43,255.83
15,652.45
10,619.17
4,165.19
4,899.33
11,487.26
5,719.84
(2,532.23)
(8,265.83)
4.59
13.76
8,959.62
(2,532.23)
842.08
139.86
1,149.00
6,828.68
(2,532.23)
85,506.73
77,101.95
23,217.21
5,848.76
17,368.45
(59.15)
2,216.20
73,441.32
72,232.55
10,097.62
6,990.87
3,106.75
(32.38)
(125.59)
14,967.51
(1,031.24)
4.59
13,940.86
842.08
139.86
1,149.00
11,809.92
(109.45)
2,964.92
(4,009.92)
13.76
(1031.24)
(1031.24)
CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Financial Statements for the year ended December 31, 2010, under Indian GAAP form part of the
Annual Report.
OPERATIONS
The Company recorded consolidated sales of Rs. 85,507 millions against Rs.73,441 millions in the previous year,
registering a growth of 16 %. The growth in turnover was higher than the net growth registered by the Pharma industry
in previous year. Profit Before Tax stood at Rs. 23,217.21 millions against Rs. 10,097.62 millions for the previous year
49
registering a growth of 130%. Profit after tax and provision for diminution in value of investments in associates and
minority interest stood at Rs.14,967.51 millions against Rs.2,964.92 millions for the previous year. Higher profits in the
year are primarily on account of improved gross margin levels due to changes in product mix, revenues from First to
File products in the US market, cost optimization and favorable forex movement. Continued focus of the Company on
cost optimization and efficient working capital management is reflected in the strong growth in the operating profit.
As the Company and Daiichi Sankyo Company, Ltd. (DS), its holding Company, evolve in their pursuit of the Hybrid
Business Model to leverage their mutual strengths, many opportunities in the front and back-end become available.
The Company is working on various such initiatives.
The Company is continuously making sincere efforts for an early resolution of the issues raised by USFDA and the
Department of Justice, USA and is fully co-operating with the concerned authorities.
DIVIDEND
Your Directors recommend a dividend of Rs. 2.00 per share of par value of Rs. 5/- each for the year ended
December 31, 2010.
CHANGES IN CAPITAL STRUCTURE
Allotment of shares on exercise of Employees Stock Options
During the year, the Company allotted Equity Shares (on pari-passu basis) pursuant to exercise of Stock Options by the
eligible employees, as summarized below:
Date of Allotment
No. of Shares
January 13, 2010
105,888
April 13, 2010
144,956
July 12, 2010
85,955
October 8, 2010
286,536
SUBSIDIARIES AND JOINT VENTURES

In view of the business model of the Company in Japan, Ranbaxy Japan K.K., a wholly owned subsidiary of the
Company has been liquidated. Further, during the year, two nonoperating wholly owned subsidiaries viz. Lapharma
GmbH at Germany and Ranbaxy N.A.N.V, at Antilles, (The Netherlands) were also liquidated.
With a view to create a sustainable business base in North Africa, the Company has set up a wholly owned subsidiary
in Morocco under the name of Ranbaxy Morocco LLC.
A statement pursuant to section 212 of the Companies Act, 1956, relating to subsidiary companies is attached to the
accounts. In terms of the approval granted by the Central Government vide letter No. 47/718/2010CLIII dated
December 28, 2010 under Section 212(8) of the Companies Act, 1956, the audited accounts and Reports of Board of
Directors and Auditors of the Companys subsidiaries have not been annexed to this Annual Report. The consolidated
financial statements prepared in accordance with Accounting Standard 21 issued by the Institute of Chartered
Accountants of India presented in this Annual Report include the financial information of the subsidiary companies.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management Discussion and Analysis Report, as required under the Listing Agreements with the Stock Exchanges, is
enclosed at Annexure A.
EMPLOYEES STOCK OPTION SCHEME
Information regarding the Employees Stock Option Schemes is enclosed at Annexure B.
LISTING AT STOCK EXCHANGE
The Equity Shares of the Company continue to be listed on Bombay Stock Exchange Ltd. and The National Stock
Exchange of India Ltd. Global Depository Shares are listed on the Stock Exchange at Luxembourg and Foreign
Currency Convertible Bonds are listed on the Singapore Exchange Securities Trading Ltd. The annual listing fees for
the year 20102011 have been paid to these Exchanges.
50
DISCLOSURE OF PARTICULARS
As required by the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, the relevant
information and data is given at Annexure C.
FIXED DEPOSITS
The Company has not invited / received any fixed deposits during the year.
DIRECTORS RESPONSIBILITY STATEMENT
In terms of provisions of Section 217(2AA) of the Companies Act, 1956, (Act), your Directors confirm that:
(i)
In the preparation of the annual accounts, the applicable accounting standards have been followed, alongwith
proper explanation relating to material departures, wherever applicable.
(ii)
The Directors have selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company,
as at the end of the accounting year and of the profit of the Company for the year.
(iii) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
(iv) The Directors have prepared the annual accounts on a going concern basis.
DIRECTORS
Mr. Atul Sobti stepped down as CEO & Managing Director of the Company effective August 19, 2010. The Director
placed on record their appreciation for valuable contribution made by Mr.Sobti during his tenure with the Company.
Mr. Arun Sawhney was appointed as Additional Director of the Company and holds office upto the date of the ensuing
Annual General Meeting. The Company has received Notice alongwith requisite deposit from a member under Section
257 of the Companies Act, 1956, proposing the candidature of Mr. Arun Sawhney as a Director of the Company.
Mr. Sawhney was also appointed as Managing Director of the Company effective August 20, 2010 for a period of
three years. Approval of the shareholders is being sought at the ensuing Annual General Meeting for appointment of
Mr. Sawhney as the Managing Director of the Company for a period of three years and payment of remuneration
to him. Mr. Sawhney being the Managing Director will not be liable to retire by rotation in terms of the Articles of
Association of the Company.
Dr. Anthony H. Wild and Mr. Akihiro Watanabe who were appointed as Directors of the Company in the casual
vacancies caused by resignation of Dr. Brian W. Tempest and Mr. Surendra Daulet-Singh respectively hold office upto
the date of the ensuing Annual General Meeting. The Company has received Notices alongwith requisite deposit from
members under Section 257 of the Companies Act, 1956 proposing the candidatures of Dr. Anthony H. Wild and Mr.
Akihiro Watanabe as Directors of the Company.
CORPORATE GOVERNANCE
Report on Corporate Governance alongwith the Certificate of the Auditors, M/s. B S R & Co. confirming compliance
of conditions of Corporate Governance as stipulated under Clause 49 of the Listing Agreement with the stock
exchanges forms part of the Annual Report.
COST AUDIT
The reports of M/s. R.J. Goel & Co., Cost Accountants, in respect of audit of the cost accounts relating to formulations
and bulk drugs for the year ended December 31, 2010, will be submitted to the Central Government in due course.
AUDITORS
M/s. B S R & Co., Chartered Accountants, retire as Auditors of the Company at the conclusion of ensuing Annual
General Meeting and have confirmed their eligibility and willingness to accept the office of the Auditors, if re-appointed.
STATEMENT OF EMPLOYEES
Statement of particulars of employees as required under Section 217(2A) of the Companies Act, 1956 (Act) and
Rules framed thereunder forms part of this Report. However, in terms of the provisions of Section 219(1) (b) (iv) of
51
the Act, this Report and Accounts are being sent to all the shareholders excluding the Statement of particulars of
employees under Section 217(2A) of the Act. Any shareholder interested in obtaining a copy of the statement may
write to the Company Secretary at the Corporate Office of the Company.
ACKNOWLEDGEMENTS
The Directors hereby wish to place on record their appreciation of the significant contribution made by each and every
employee of the Company. The Directors also thank all other stakeholders for their support and encouragement. Your
Directors look forward to your continued support in the years to come.

On behalf of the Board of Directors
Gurgaon
February 22, 2011
Dr. Tsutomu Une

Chairman
52
ANNEXURE A
MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE & DEVELOPMENTS
The Global Pharmaceutical market sales for 2010 is expected to be around $840-850 Bn* which reflects a growth of
4-5%. On a consolidated basis, the market is expected to grow at a CAGR of 4-7% to cross $1 Tn in sales by 2014.
More than half of this increase (53%) in the Pharmaceutical market is expected to be contributed by the Pharmerging**
markets forecasted to grow at 14-17%, while the rest is expected to come from the Developed*** markets which are
forecasted to grow at a CAGR of 2-5%.
For 2011, IMS forecasts value of the Pharmaceuticals market between $880-890 Bn with a growth rate of between
5-7%. The Pharmaceutical sales in the United States of America is expected to be in the range of $320-330 Bn, with
a growth rate of between 3-5% which will continue to be the single largest market in the world with ~37% share. Sales
in Japan, the second largest Pharma market are expected to be in the range of $90-100 Bn reflecting a growth of 5-7%.
Top 5 European markets are expected to have sales in the range of $135-145 Bn, growth of 1-3%. Pharma sales in the
Pharmerging markets amounted to $170-180 Bn with a 15-17% growth.
The industry continues to remain highly fragmented and fiercely competitive especially due to increased genericisation.
The Generics industry is at a critical point as it has the opportunity to capitalize on the products going off patent, in the
short term, and, will thereafter face drying up of the First to File (FTF) Opportunities in the coming years. As a part
response to cope with the challenges effectively, the industry has witnessed consolidation; this may be replicated across
the Global Pharma and Generics industry.
Mature markets contribute to ~56% of the world Generics market currently, which is expected to go down to 50% by
2020 per IMS. Here too, the Pharmerging markets will grow at a significantly higher rate than the rest of the world;
specifically by 2020, it is estimated that half of the Generics market will be between China, India and the United Stated
of America.
Generics
The Generics segment of the Global Pharmaceutical market contributed $126 Bn, with a growth of 11% during 2010;
this is twice the growth of the total Pharmaceuticals industry. Generics volume share in the world Pharma market also
increased to ~50%. This trend is visible not only in the Developing markets but also in the Mature markets; volume
contribution from the USA and Top 5 Europe markets crossed the half line mark. The market has expanded due to
the increase in genericisation ($170 Bn drugs going off patent by 2015), healthcare cost containment by governments/
payers and relatively low penetration in some major geographies etc.
Contribution from the Pharmerging markets has gone up with China, India, Brazil, Turkey and Russia leading the way
from contributing 19% in 2004, to contributing 33% to the Generics industry in 2010.
The United States of America: The prescription sales of branded products continued to decline during the year,
while a recovery was seen in value terms. As with the Global Pharma market, the USA is the largest constituent of
Generics, with 30% market share in 2010. Growth in the Generics in the country was ahead of Pharma growth for the
country at ~9% (CAGR) since 2005. For the next few years, the USA will continue to be one of the most important
market for Generic Companies.
Europe: The major European markets contribute to 25% by value to the worldwide Generics industry and have
grown at ~9% (CAGR) (2005-09) as compared to low single digit growth for the Total Pharma industry. The Generics
53
market growth is forecasted to slow down to 4% CAGR for 2009-14. Europe is evolving in a manner that it should now
be studied in terms of different clusters: one way is to look at the West and East Europe markets separately another is
to view some of the markets where INN-Generic penetration is high versus some, where branded Generics continue
to be patronized.
India: The Indian pharmaceutical market (IPM) grew at ~18% to $10 Bn in 2010. This reflects a robust CAGR of 15%
for 2004-10 period. The IPM is forecasted to continue to grow at 15-17% in the next 5 years. The key reasons for the
growth are (i) faster economic growth with Gross Domestic Product growth at over 8%, (ii) increase in healthcare access
due to government and private efforts and (iii) increase in penetration to smaller towns. Apart from the macro-factors,
growth in the IPM was primarily driven by volume ~60% and new introductions ~40% with minimal price increases.
Large products continued to become larger with the cut-off for top 300 products now at $5.5 Mn instead of $3.5 Mn.
OUTLOOK ON OPPORTUNITIES
The Global Generics industry has grown at 11% CAGR (2007-10) 2 times the growth of Global Pharma and is
expected to continue on its growth path aided by multiple factors including (a) Opportunity of $170 Bn drugs going
off patent by 2015. (b) Increasing burden of healthcare in developed markets, especially during difficult economic
times. Countries such as the USA are front runners in this field, others such as the United Kingdom and Germany are
following suit. (c) Despite all the focus on Generics, some of the major markets still have low penetration levels. These
include parts of Europe and Japan. (d) Increasing access of Healthcare in developing economies and (e) Increasing
competition in the industry and consolidation.
With ground presence in 46 countries that cover developed and emerging markets, multiple exclusive FTF opportunities
in the United States from among the worlds top selling drugs, Ranbaxy is well placed to benefit from this growth.
To capitalize on the Hybrid Business Model pioneered by Ranbaxy and Daiichi Sankyo, both the companies are working
together for mutual benefit. On the front end, Ranbaxy continues to engage in promoting DSs innovator products
in global markets including Romania, India and some African countries. On the back end, in FY 2010 approval was
received from Department for Scientific and Industrial Research (DSIR) to transfer New Drug Discovery Research
assets to Daiichi Sankyo India Pharma Pvt. Ltd. Further, Ranbaxy has also begun to collaborate in development
and supply of new chemical compounds to Daiichi Sankyo. Many other front-end and back-end opportunities were
explored during the year.
The United States of America: The USA, with half the worlds Pharmaceuticals market and the largest Generics
market is vital to the growth of Ranbaxy. For the first time, Ranbaxy USA crossed $0.5 Bn mark to close the year with
sales of $0.6 Bn. The successful monetization of Valacyclovir (launched in November 2009), and launch of Donepezil
(November 2010) reassures managements focus on this important market. Ranbaxy has also posted healthy growth in
the USA business excluding FTF.
As of December 31, 2010, the Company had 205 ANDAs filed with the USFDA, of which 135 have been approved.
Market size at innovator prices, of the pipeline of the Companys pending ANDAs, is ~$41 Bn. Of these, Ranbaxy
believes that it has a Paragraph-IV / First to File Status (FTF) on 7 applications.
Europe: The Europe market is increasingly showing a marked difference between the countries that have gone the
tender-way and others. This brings to fore buyer power in countries such as Germany, and, to a lesser extent the United
Kingdom. Similarly, regionally too, Western Europe and Eastern Europe have different business models. Although
Ranbaxy has been impacted by the above-mentioned changes in the region, it has been nimble in adjusting to the
ongoing changes.
54
With respect to Romania, where Terapia Ranbaxy has faced liquidity crunch in the earlier years due to change in
regulations etc., it has been able to tide through the difficulties and is in a stronger position today. Furthering Ranbaxys
presence in the region, Terapia Ranbaxy will cater to a larger portion of the manufacturing requirement for Europe
and the CIS.
India: Subsequent to the growth witnessed by the IPM, per IMS, it is now the 3rd largest Generics Pharma market
in the world.
Key reasons for this growth are the strong economic growth, healthcare infrastructure expansion, rising incidence
of chronic diseases and increase in healthcare access in the extra urban and rural markets. Project Viraat was
conceptualized to accelerate Ranbaxys growth in the IPM and participate in its growth momentum. Viraat is an
all encompassing strategy that covers augmenting field force, increasing coverage to the hitherto inadequately catered
to markets, including therapies and increase in number of launches. The initiative should start to bear fruit in 2011.
Emerging countries: Ranbaxy has a strong presence in the Emerging markets, with 50% of total sales coming
from the segment. The Company reaches out to countries in the Asia-Pacific, Africas, the CIS, LATAM etc. that are
generally not as well covered by the Innovator Companies, and gives Ranbaxy an opportunity to enter the market
with its Branded Generics portfolio. Ranbaxy is a one of the largest players in world Generics Pharma space, with
its understanding of the market specific requirements such as manufacturing practices, marketing expertise and
regulations etc; and the associated risks and rewards for mature as well as the Emerging markets. It is this mix of
geographies that also work as a natural hedge for the Companys business. This is an opportunity for Ranbaxy, which
is well placed in the Pharmerging markets, to benefit from this phase of growth in the industry.
OUTLOOK ON THREATS, RISKS AND CONCERNS
Other than the risks faced by the Pharmaceuticals industry at large, the global Generics business faces risk associated
with patent litigation, regulatory issues and product liability, especially in developed markets. Further, Innovator
pharmaceutical companies also continuously work on developing new ways to enhance lifecycle of their patented
drugs to delay entry of generic versions. As more and more drugs go off-patent, the Generics space is also becoming
more competitive not just in the Developed world, but also in the Emerging countries.
Manufacture of pharmaceuticals is strictly regulated and controlled by authorities across the world. Should Ranbaxy,
or its third party suppliers fail to fully comply with such regulations, there could be a government-enforced shutdown
of concerned production facilities, revocation of drug approvals previously granted, failure or delay in obtaining
approvals for new products, product recalls of existing drugs sold in the market, prohibition on the sale or import of
non-complying products.
Regulators across the world have become stricter, in respect of compliance to requirements with even more severe
consequences for non-compliance.
On its part, Ranbaxy is working with the United States Food & Drug Administration (USFDA) which has invoked its
Application Integrity Policy (AIP) against the Paonta Sahib manufacturing facility. The Company also faces challenges
of import alert and warning letters from the USFDA for certain alleged cGMP violations. The Company continues to
co-operate fully with the USFDA and the Department of Justice towards a comprehensive resolution.
In the Indian pharmaceuticals market, prices of certain pharmaceutical products is regulated by the Drug Pricing
Policy through the Drug Pricing Control Order, 1995 (DPCO). Ranbaxy has some pending legal cases and in all the
matters the Company has been granted orders from the respective Courts in its favor so far.
Over three-fourths of Ranbaxys turnover comes from Overseas. Thus, sharp movements in foreign exchange rates can
have a significant impact on the Companys financial results.
The above-mentioned issues are being provided as disclosure in relation to the matters by explaining the position.
55
SEGMENT-WISE PERFORMANCE
The Company recorded global sales of $1,868 Mn in 2010, a 20% growth at constant foreign exchange rate over the
preceding year. Emerging markets contributed 50%, while Developed markets, helped by higher sales due to the First
to File opportunity, contributed 44% to total sales. Dosage form sales accounted for 94% of sales.
INTERNAL CONTROL SYSTEMS AND ADEQUACY
There are documented and well established operating procedures in the Company and its subsidiaries in India and
overseas. These provide direction and management control to safeguard the Companys interest apart from serving the
purpose of adequate compliance commensurate to the size and complexity of Ranbaxys business.
With regular periodicity, the findings and recommendations of the Internal Audit Team are shared with the Managing
Director and the Audit Committee in the form of Internal Audit Reports/ Comments.
FINANCIAL PERFORMANCE
During the year, the Company recorded consolidated global sales of Rs.85,507 Mn ($ 1,868 Mn), a growth of 16% in
rupee terms. Operating margins improved when compared with previous year on account of higher overall sales, close
management of cost, capitalizing on the FTF Opportunities and foreign exchange earnings. Earnings before tax, share
in loss of / diminution in the value of investments in associates and minority interest were Rs. 23,217 Mn ($507 Mn)
and Earnings after tax were Rs. 14,968 Mn ($327 Mn).
HUMAN RESOURCES
Human capital is our most valuable asset; we promote a work culture, which facilitates entrepreneurship and innovative
thinking by challenging individual potential and rewarding achievements.
Our structured developmental intervention provides the platform for individuals to perform to their full potential. We
continue our endeavor to celebrate success at all platforms from local to Global level so as to recognize exceptional
performance across the globe.
As an overall philosophy we are driving the process of global harmonization of our HR policies and processes for the
benefit of our people. Benchmarking surveys at global level enable us to stand strong against market parameters of
pay and reward. There is a strong pay and performance linkage to ensure employees are motivated to work harder and
contribute to the overall performance of the organization.
The total number of employees of the Company and its subsidiaries as on December 31, 2010 stood at 13,420.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing the Companys objectives, estimates, expectations
or projections may be forward looking statements within the meaning of applicable laws and regulations. Actual
results could differ materially from those expressed or implied. Important factors that could make a difference to the
Companys operations include Government regulations, patent laws, tax regimes, economic developments within India
and countries in which the Company conducts business, litigation and other allied factors.
* Source IMS Global Pharmaceutical Market Forecast: October 2010
** Pharmerging markets: China, Brazil, Russia, India, Mexico, Turkey, Venezuela, Poland, Argentina, Thailand, Romania, Indonesia,
South Africa, Egypt, Ukraine, Pakistan and Vietnam
*** Developed markets: US, Japan, UK, Spain, Germany, France, Italy and Canada
56
ANNEXURE B
Information regarding the Employees Stock Option Schemes
(As on December 31, 2010)
S. No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Details
Total No. of Options in force at the beginning of the year
Options granted in the year 2010
No. of Options vested during the year
No. of Options exercised during the year
No. of shares arising as a result of exercise of options during the year
(including additional shares allotted on account of bonus shares as
explained in Note 2 below)
No. of Options lapsed and forfeited during the year
Variance in terms of options
Money realized by exercise of options during the year
Total No. of Options in force at the end of the year
Nos.
7,413,016
1,573,669
1,245,645
589,939
623,335
995,603
N.A.
Rs. 203,195,659
7,401,143
Note:
Options granted upto October 3, 2002, are entitled for additional shares on account of bonus shares in the ratio of
3 for 5.
Pricing formula: Closing price of the Equity Shares of the Company prior to the date of meeting of the Compensation
Committee (CC) in which stock options are granted on the stock exchange on which the shares of the Company are
listed. The closing price of the shares of the Company at the National Stock Exchange of India Limited (NSE) on
February 23, 2010 was Rs. 449.60 per share. Accordingly, exercise price of the options granted by the CC at the
meeting held on February 24, 2010 was fixed at Rs. 450 per Share of Rs. 5 each.
(i) Options granted in the year 2010 to senior managerial personnel@:
Name
Designation (Present)
Mr. Arun Sawhney

Managing Director*
Dr. Sudershan K. Arora President-R&D
Mr. Ramesh L. Adige
President-Corporate Affairs & Global Corporate
Communications
Mr. Rajbeer Sachdeva
Head-Global Legal
Mr. Bhagwat Yagnik
Head-Global Human Resources
Mr. Sanjeev I Dani
Senior Vice President & Regional Director-Asia, CIS & Africa
Mr. Ashwani Kumar
Senior Vice President-Global Pharma Manufacturing &
Malhotra
Supply Chain
Mr. Ranjan Chakravarti Senior Vice President Global Therapy & Alliance Management
Mr. K. Venkatachalam Vice President & Regional Director - North America & LATAM
Mr. Debashish Dasgupta Vice President & Regional Director-Europe
Mr. T. L. Easwar
Vice President-API Manufacturing
Mr. Govind K. Jaju
Vice President-Global Materials Sourcing & API Business
Mr. S. K. Patawari
Company Secretary
Excludes the Senior Managerial personnel who ceased to be in employment with the Company.
* Granted when he was President-Global Pharmaceutical Business of the Company.
$
Pro-rated based on date of joining/promotion.
No. of Stock
Options
15000
15000
15000
(ii) Employees who have been granted 5% or more of the : Nil

options granted during the year
(iii) Employees who have been granted options during : Nil
any one year equal to or exceeding 1% of the issued
capital of the Company at the time of grant
(iv) Diluted earnings per share (EPS)
: Rs. 23.75
57
4200$
5000$
12500
12500
10000
12500
10000
10000
10000
7600$
(v) (a) Method of calculation of employee compensation : The Company has calculated the employee
cost
compensation cost using the intrinsic value of the
stock options
(b) Difference between the employee compensation : Rs. 193.08 Mn
cost so computed at (a) above and the employee
compensation cost that shall have been recognized
if it had used the fair value of the options
: Rs. 11,487.26 Mn
(c) The impact of this difference on profits and on : Profit after tax
Less: additional
EPS of the Company
employee compensation
cost based on fair value
: Rs. 193.08 Mn
(net of tax)
Adjusted PAT
: Rs.11,294.18 Mn
Adjusted EPS (diluted)
: Rs. 23.32
(vi) Weighted-average exercise price and fair value of
Stock Options granted :
(Post split adjusted price)
Stock options
granted on
12.01.2001
03.12.2001
01.04.2002
07.02.2003
22.01.2004
17.01.2005
17.01.2006
17.01.2007
16.01.2008
11.06.2008
19.12.2008
21.01.2009
24.02.2010
Weighted average
exercise price
(in Rs.)
336.50
297.50
372.50
283.50
496.00
538.50
392.00
430.00
391.00
561.00
219.00
216.00
450.00
(vii) Description of the method and significant

assumptions used during the year to estimate
the fair value of the options, including the
following weighted average information
Weighted average
Fair value
(in Rs.)
145.00
188.50
226.00
132.50
212.50
215.68
194.07
232.57
107.06
172.89
63.31
92.97
218.64
Closing market price

at NSE on the previous day
of the grant (in Rs.)
324.15
369.48
449.48
317.45
503.10
534.33
391.15
429.65
390.75
560.75
218.60
215.15
449.60
The Black-Scholes option pricing model was developed for

estimating fair value of traded options that have no vesting
restrictions and are fully transferable. Since Option pricing
models require use of substantive assumptions, changes
therein can materially affect fair value of Options. The option
pricing models do not necessarily provide a reliable measure
of fair value of options.
The main assumptions used in the Black- Scholes option pricing model during the year were as follows :
Particulars
Options
granted on
24.02.2010
3.93%
6.5 years
7.72%
40.30%
Dividend yield
Expected life of options from the date(s) of grant
Risk free interest rate
Expected volatility
58
ANNEXURE C
Information pursuant to Companies (Disclosure of Particulars in Report of Board of Directors) Rules, 1988, forming
part of the Report of the Directors
1. CONSERVATION OF ENERGY AND ITS IMPACT
Measures for Conservation of Energy
Impact resulting into

saving (in Rs. Million)
Furnace Oil (FO) was replaced with Natural Gas (LNG) for steam generation in boilers & incinerator.
76.80
Power Trading at tariff lower than that of PSEB, from June to December 2010.
20.91
Peak load exemption increased from 5200 KVA to 6000 KVA. This has helped to avoid operation
18.00
of DG Sets during the peak load restriction, thereby resulting in net reduction in HSD consumption
by 0.4 Mn Lts of HSD.
By good maintenance of steam and condensate system and implementation of energy audit
6.00
recommendations conducted by M/s Forbes Marshall, there has been improvement in the
condensate trapping systems, condensate recovery and overall reduction in usage of furnace oil
by 0.3 Mn Lts.
Power saving by auto control of general area lighting, HVAC operational controls as per the
5.00
requirement of the production, installation of motion control in the office and canteen area, better
operational control on chillers etc. resulted in reduction in power consumption by 1.3 Mn Units.
Power Factor of Unity was maintained from January to December 2010.
4.17
Re-engineering of cold water pumps in New Utility and cooling tower pump in ETP.
3.82
Installation of two numbers fanless cooling towers.
1.71
Optimized the CHW machines & pumping systems to have suitable loading & adequate flow on
1.25
return header, thereby reducing 1548 running hours till October 2010.
Optimizedconsumption of air and stopped one air compressor.
0.90
Replacement of steam traps and better recovery of condensate back to boiler house.
0.70
Power Factor was maintained at 0.99 & Load Factor maintained above 50%.
0.70
Optimization of airflow rate in AHUs. This project was done in a phased manner in different plants.
0.65
Power Factor maintained at Unity and got power factor compensation from PSEB.
0.50
Automation of boiler to increase the throughput from 2.5 TPH to3 TPH
0.36
Installation of electronic expansion valves in place of thermostatic expansion valves to improve the
0.33
refrigeration chiller efficiency.
Chilled Brine and CHW plant return line water fed directly to chiller, thereby eliminating primary
0.33
pump of 5.5 KW.
Control mechanism put in place in Boiler Plants for Furnace oil quality monitoring, TDS
0.30
management, Blow down management.
Provided CHW circulation in place CW in the condenser of CHB4 & 5A machine for improving
0.18
the efficiency of machine and to tap the excess chilled water system available. Savings of 11 KW
per machine on total running hours of machine.
Installation of timer on tube lights (92 nos) of MCC rooms to switch them off automatically when
0.18
not required
Carried out corrections for cooling tower fans for LG ratio. The action required adjustment of fan
0.16
blade angle based on output & KW drawn.
2. RESEARCH & DEVELOPMENT

a) Specific areas in which R&D is carried out
Develop technology for Active Pharmaceutical Ingredients (APIs), conventional & value added innovative
dosage forms - complying with international quality & regulatory norms.
Develop Platform Technologies and Products in the area of Novel Drug Delivery Systems.
Discovery and Development of new drug molecules in select areas: Infectious Diseases, Metabolic
Diseases, Inflammatory/Respiratory Diseases and Oncology.
GLP/cGCP complying Bioavailability/Bioequivalence, Toxicology and Clinical Studies (Phase-I, II & III).
Innovation in packaging for improved patient convenience & compliance.
Up-gradation of existing technologies / products on ongoing basis.
b) Benefits derived as result of R&D activities
Technology to manufacture APIs and Dosage Forms.
Oral Controlled Release Dosage Forms leading to better patient convenience and compliance.
Improved productivity / process efficiencies.
Internationally competitive prices and product quality.
Safe and environment friendly processes.
59
Generation of Intellectual wealth for the Company in key potential markets.

Grant of process patents for Active Pharmaceutical Ingredients (APIs) as well as dosage forms (both
conventional & novel drug delivery systems)
Product patents in the areas of drug discovery research
Self reliance and import substitution for conservation of Foreign Exchange.
Foreign exchange earnings / savings
Speed to marketplace
Enhanced business through Licensing arrangements and strategic alliances.
Enhanced Global presence / visibility
c) Future plan of action
Continue augmenting R&D capabilities & productivity through technological innovations, use of modern
scientific and technological techniques, training and development, benchmarking and global networking.
Greater thrust in the areas of Novel Drug Delivery Systems.
Continue developing innovative, commercially viable process knowhow for both Active Pharmaceutical
Ingredients (APIs) and dosage forms.
Continue strengthening the Clinical Research infrastructure and capabilities complying international
GLP/cGCP norms.
Continue improvements in packaging for pharmaceuticals to ensure shelflife/stability, quality and better
patient convenience and compliance.
Enhance national and international research networking and strategic alliances.
d) Expenditure on R&D
Rs. Millions
Year ended
Year ended
December 31, 2010
December 31, 2009
Capital
198.20
221.98
Revenue
4,780.70
4,721.84
Total
4,978.90
4,943.82
% to turnover
9.48%
10.90%
3. TECHNOLOGY, ABSORPTION, ADAPTATION AND INNOVATION
a) Efforts in brief, made towards technology absorption and innovation
As per 2(a)
b) Benefit derived as a result of the above efforts, e.g. product improvement, cost reduction, product development,
import substitution etc.
As per 2(b) above
Future course of action
a) To continue developing innovative and commercially viable process know-how for APIs and Dosage
Forms (Conventional and Novel Drug Delivery System)
b) Information in case of imported technology (imports during the last five year)
Not applicable
4. FOREIGN EXCHANGE EARNINGS AND OUTGO
Activities relating to exports, initiatives taken to increase exports; development of new export markets of products
and export plans Overseas sales (excluding sales to Nepal) were Rs. 34, 435.51 Mn for the financial year ended December 31, 2010.
Company continued to file Drug Master Files (DMFs) for API with the regulatory authorities in several markets.
Continued to receive income by way of royalty, technical and management service fee and dividend from
overseas subsidiaries / affiliates.
Exports continued to be key focus for company and initiatives including alliances are initiated in International
Markets.
Company successfully launched First to File product Donepezil in US Market in current year.
Several new Dosage formulations / Product launches like Atorvastatin in Canada, South Africa, Romania
took place during the year,
Company in pursuit of the Hybrid Business Model with Daiichi Sankyo Company, Limited (DS), its Holding
Company, has launched several products of DS in Romania, Mexico and South Africa.
Rs. Millions
Year ended
Year ended
December 31, 2010
December 31, 2009
Earnings
37,866.43
31,364.51
Outgo
11,997.48
13,100.41
60
Form - A
Form for disclosure of particulars with respect to conservation of energy

Current Year
Previous Year

2010
2009
A. Electricity and Fuel Consumption
1. Electricity

(a) Purchased Units (KWH)
Total Amount (Rs. Million)
Rate/Unit (Rs.)
146,945,800 132,372,169
655.65
561.87
Rs. 4.46
Rs. 4.24
9,401,043
12,308,322
(b)
Own Generation

i) Through Diesel Generator Unit (KWH)
Unit per Ltr. of Diesel Oil
Cost/Unit
3.40 3.48
Rs. 10.12
Rs. 8.29
ii) Through Steam Turbine/Generator
Not Applicable
Not Applicable
2. Coal (Specify quality and where used)
Not Applicable
Not Applicable
3. Steam
(a) Furnace Oil Qty. (K. Ltrs.)
Total Amount (Rs Million)
Average Rate (Rs. per Ltr.)
(b) LNG Qty. (1000s SCM)
Average Rate (Rs. per SCM)
(c) HSD Qty. (K. Ltrs.)
11,478 16,364
336.22 378.90
Rs. 29.29
Rs. 23.15
6,604 0.00
127.40 0.00
Rs. 19.29
Rs. 0.00
1,072 716.00
Average Rate (Rs. per Ltr.)
Rs. 30.25
Rs. 28.37
4. Others/internal generation
Not Applicable
Not Applicable
32.44 20.32
B. Consumption per unit of production

Units
Standards Current Year
Previous Year

(if any)
Electricity
Active Pharmaceutical Ingredients (kwh per kg) No specific
88.51
91.36
Dosage Forms
(kwh per
standards -
104.03
105.78

1000 packs) consumption

per unit

depends on

product mix
Furnace Oil
Active Pharmaceutical Ingredients (Ltrs per Kg)
8.26
11.05
Dosage Forms
K. Ltrs per
0.005 0.01

1000 packs)
LNG
Active Pharmaceutical Ingredients (1000s SCM per Kg)
3.48
Dosage Forms
(1000s SCM per
0.01

1000 packs)
Coal
Not Applicable
Not Applicable
Others
Not Applicable
Not Applicable
61
Ten Years
at A Glance
Rs. Millions
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
20545.4
28197.9
35334.9
36143.4
35366.5
40587.1
41844.9
43083.6
45211.8
52514.9
Results for the year

Sales
Index
Exports
Index
Gross Profit
Index
Profit before Tax
Index
Profit after Tax
Index
Equity Dividend
1.0
1.4
1.7
1.8
1.7
2.0
2.0
2.1
2.2
2.6
10290.8
18502.9
24674.6
24562.4
23371.1
27175.7
26411.2
28109.8
28377.5
34435.5
1.0
1.8
2.4
2.4
2.3
2.6
2.6
2.7
2.8
3.3
3924.1
7304.8
10061.4
7211.7
3178.8
6081.7
9865.6
(5713.3)
11002.7
17070.9
1.0
1.9
2.6
1.8
0.8
1.5
2.5
(1.5)
2.8
4.4
2777.7
7133.8
9563.7
6283.4
2013.6
4429.8
7744.1
(16190.8)
10619.2
15652.5
1.0
2.6
3.4
2.3
0.7
1.6
2.8
(5.8)
3.8
5.6
2519.6
6235.8
7947.8
5284.7
2237.0
3805.4
6177.2
(10448.0)
5719.8
11487.3
1.0
1158.9
2.5
2434.0 $
3.2
2.1
0.9
1.5
2.5
(4.1)
2.3
4.6
3156.3
3162.6
3166.7
3168.9
3171.5
0.0
0.0
842.1
0.7
Index
1.0
2.1
2.7
2.7
2.7
2.7
2.7
0.0
0.0
Equity Dividend (%)
100
150
170
170
170
170
170
40
21.86
28.86
42.61
28.26
5.68 ^
9.87 ^
11.31
27.29
10.74
23.75
9278.2
10448.8
12470.6
16669.4
22321.6
24354.5
25889.0
28155.1
30358.4
31878.2
1.0
1.1
1.3
1.8
2.4
2.6
2.8
3.0
3.3
3.4
6130.5
6753.9
8017.9
11417.4
16328.1
17359.1
17969.4
18854.4
20083.2
20423.0
1.0
1.1
1.3
1.9
2.7
2.8
2.9
3.1
3.3
3.3
7454.5
9564.4
13302.9
9466.8
11281.0
12630.0
12588.2
8493.6
12210.7
35463.7
1.0
1.3
1.8
1.3
1.5
1.7
1.7
1.1
1.6
4.8
16069.7
18828.1
23217.8
25095.1
23773.0
23500.1
25383.9
37167.7
41346.1
51323.9
1.0
1.2
1.4
1.6
1.5
1.5
1.6
2.3
2.6
3.2
1158.9
1854.5
1855.4
1858.9
1862.2
1863.4
1865.4
2101.9
2102.09
2105.2
14910.8
16973.6
21362.3
23236.2
21910.8
21636.7
125.13
135.00
6797
7195
Earning per share (Rs.)

Year-end Position
Gross Block+
Index
Net Block
Index
Net Current Assets
Index
Net Worth
Index
Share Capital
Reserve & Surplus
Book value per share (Rs.)
No. of Employees
138.66
6424
101.52 $$
6297
23518.6
35065.8
39244.0
49218.7
63.84 ^
63.05 ^
68.04
88.42
98.35
121.90
7174
8020
8141
8536
9655
9933
Index : No. of times

+ Includes Capital Work-in-Progress
$ Includes Interim Dividend Rs. 5 per share, prior to issue of bonus shares and Final Dividend of Rs. 10 per share
$$ Post issue of Bonus shares in the ratio of 3 for 5 in October, 2002.
^ After Share split
Sales are stated net of excise duty recovered from 2002 onwards
Earning per share are stated on fully diluted basis from 2002 onwards
Sales are stated net of excise duty and discount from 2008 onwards
Sales are stated net of excise duty, discount and replacement of breakages from 2009
62
Auditors
Report
To the Members of
a) We have audited the attached Balance Sheet of Ranbaxy Laboratories Limited (the Company) as at 31
December2010 and also the Profit and Loss Account and the Cash Flow Statement (collectively referred to
as financial statements) of the Company for the year ended on that date, annexed thereto. These financial
statements are the responsibility of the Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
b) We conducted our audit in accordance with auditing standards generally accepted in India. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statements presentation. We
believe that our audit provides a reasonable basis for our opinion.
c) As required by the Companies (Auditors Report) Order, 2003 (the Order) issued by the Central Government
of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, (the Act), we enclose in the
Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order.
d) Further to our comments in the Annexure referred to above, we report that:
(i) we have obtained all the information and explanations, which to the best of our knowledge and belief were
necessary for the purposes of our audit;
(ii) in our opinion, proper books of account as required by law have been kept by the Company so far as appears
from our examination of those books;
(iii) the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in
agreement with the books of account;
(iv) in our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this
report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Act, to
the extent applicable;
(v) on the basis of written representations received from the directors of the Company as at 31December2010, and
taken on record by the Board of directors, we report that none of the directors is disqualified as at 31 December2010
from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Act;
e) Without qualifying our opinion, we draw attention to note 2 of schedule 23 of the financial statements, wherein
it has been stated that the Company continues to cooperate, for an effective resolution, with:
the Food and Drug Administration of the United States of America for import alert and warning letters
issued primarily relating to Good Manufacturing Practice for some of the products manufactured at
certain manufacturing facilities of the Company in India and Application Integrity Policy against one of its
manufacturing facility in India; and
the Department of Justice of the United States of America regarding certain charges relating to possible
issues with data submitted by the Company in support of product filings.
Due to the inherent uncertainty of the outcome of the above mentioned matters, financial impact, if any, of
the outcome cannot be reliably ascertained at this stage, and accordingly, no adjustment has been made to these
financial statements.
f) Without qualifying our report, we draw attention to note 14 of schedule 23 of the financial statements, wherein it
is stated that the appointment and remuneration of Mr.Arun Sawhney as the Managing Director of the Company
with effect from 20 August 2010 has been approved by the Board of Directors, but the requisite regulatory
approval from shareholders is yet to be obtained. In accordance with the remuneration determined by the Board
of Directors, Rs. 32.91 million (including commission) has been accounted for as an expense in the Profit and Loss
Account for the year ended 31 December 2010.
g) in our opinion and to the best of our information and according to the explanations given to us, the said financial
statements give the information required by the Act, in the manner so required and gives a true and fair view in
conformity with the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of the affairs of the Company as at 31December2010;
ii) in the case of the Profit and Loss Account, of the profit of the Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

For B S R & Co.


Membership No. 101248W

Vikram Aggarwal
Place : Gurgaon Partner
Dated : 22 February 2011
Membership No. 089826
63
Annexure to the Auditors Report

(Referred to in our report of even date)
(i)
(a)
The Company has maintained proper records showing full particulars, including quantitative details and
situation of its fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets through which all fixed
assets are verified, in a phased manner, over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c)
Fixed assets disposed off during the year were not substantial, and therefore, do not affect the going concern
assumption.
(ii)
(a)
The inventory, except goods-in-transit, has been physically verified by the management during the year. In
our opinion, the frequency of such verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventory followed by the management are
reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification
between the physical stocks and the book records were not material.
(iii) The Company has neither granted nor taken any loans, secured or unsecured, to or from companies, firms or
other parties covered in the register maintained under Section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations given to us, and having regard to the
explanation that sale of certain items of goods are for the specialised requirements of the buyers and suitable
alternative sources are not available to obtain comparable quotations, there is an adequate internal control system
commensurate with the size of the Company and the nature of its business with regard to purchase of inventories
and fixed assets and for sale of goods and services. Further, on the basis of our examination and according to
information and explanations given to us, there has been no continuing failure to correct the weaknesses in
the aforesaid internal control system, and adequate action is being taken by the management to rectify any
weaknesses, as identified.
(v)
In our opinion and according to the information and explanations given to us, there are no contracts and
arrangements, the particulars of which need to be entered into the register maintained under section 301 of the
Companies Act, 1956.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its
business.
(viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules prescribed by
the Central Government for maintenance of cost records under section 209(1)(d) of the Companies Act, 1956,
in respect of its products and are of the opinion that prima facie, the prescribed accounts and records have been
made and maintained. However, we have not carried out a detailed examination of the records with a view to
determine whether these are accurate or complete.
(ix) (a) According to the information and explanations given to us, and on the basis of our examination of the
records of the Company, amounts deducted / accrued in the books of account in respect of undisputed
statutory dues including Provident fund, Investor education and protection fund, Employees state insurance,
Income tax, Sales tax, Wealth tax, Service tax, Customs duty, Excise duty and other material statutory dues
have generally been regularly deposited during the year by the Company with the appropriate authorities.

There were no dues on account of cess under section 441A of the Companies Act, 1956, since the date,
from which the aforesaid section comes into force, has not yet been notified by the Central Government.
According to the information and explanations given to us, no undisputed amounts payable in respect of
Provident fund, Investor education and protection fund, Employees state insurance, Income tax, Sales tax,
Wealth tax, Service tax, Customs duty, Excise duty and other material statutory dues were in arrears as at
31December 2010 for a period of more than six months from the date those became payable.

(b) According to the information and explanations given to us, there are no dues of Income tax, Wealth tax,
Service tax and Customs duty which have not been deposited with the appropriate authorities on account
of any dispute. According to the information and explanations given to us, the following dues of Sales tax
and Excise duty have not been deposited by the Company on account of disputes:
64
(x)
Name of the
Statute
Nature of the
dues
Central Excise
Act, 1944
Central Excise
(CENVAT,
Interest
and Penalty)
Punjab General
Sales Tax Act,
1948.
Purchase Tax
(Interest and
Penalty)
U.P. Sales Tax

Act, 1948.
Sales Tax
Amount
Period to which Forum where
(Rs. in million) the amount
disputes are pending
relates
39.90 2001-2006
2.25 1989-90 and

1990-91
13.73 2007-09
Supreme Court / High

Court/ CESTAT /
Commissioner
Sales Tax Tribunal
High Court, Lucknow / Sales

Tax Tribunal / Additional
Commissioner
The Company does not have any accumulated losses at the end of the financial year and has not incurred cash
losses in the financial year and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in
repayment of dues to its bankers or debenture holders. There were no dues to financial institutions.
(xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion and according to the information and explanations given to us, the Company is not a chit fund or
a nidhi / mutual benefit fund / society.
(xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations given to us, the terms and conditions on which
the Company has issued letters of comfort, in respect of loans taken by its subsidiary companies from banks, are
not prejudicial to the interest of the Company.
(xvi) In our opinion and according to the information and explanations given to us, the term loans taken by the
company during the year are lying unutilised as at the year end.
(xvii) According to the information and explanations given to us, and on an overall examination of the balance sheet of
the Company, we are of the opinion that the funds raised on short-term basis have not been used for long-term
investment.
(xviii) The Company has not made any preferential allotment of shares during the year to companies/ firms/ parties
covered in the register maintained under section 301 of the Companies Act, 1956.
(xix) The Company has issued non-convertible debentures during the year which were redeemed before the year
end. According to the information and explanations given to us, security was not created in respect of these
debentures as these were redeemed before expiry of the time limit for creation of security as stipulated in the
letters of allotment.
(xx) The Company has not raised any money by public issues during the year.
(xxi) According to the information and explanations given to us, no material fraud on or by the Company has been
noticed or reported during the course of our audit. However, as informed to us, a case of misappropriation of
funds through falsification of documents resulting in a minor fraud to the extent of approximately Rs. 3 million
has been noticed during the year. As further informed to us, the Company has taken adequate follow up action,
including strengthening of systems.

For B S R & Co.

Membership No. 101248W

Vikram Aggarwal
65
Balance Sheet as at 31 December 2010
(Rupees in millions, except for share data, and if otherwise stated)
Schedule/
Note
SOURCES OF FUNDS
Shareholders funds
Share capital
Equity share warrants
Share application money pending allotment
Reserves and surplus
1
23(3)
2
Loan funds
Secured loans
Unsecured loans
3
4
APPLICATION OF FUNDS
Fixed assets
Gross block
Less: Accumulated depreciation, amortisation and
impairment
Net block
Capital work-in-progress
23(8)
6
7
As at
31 December
2010
As at
31 December
2009
2,105.20
65.96
49,152.76
51,323.92
2,102.09
1,756.59
1.95
37,485.42
41,346.05
1,953.85
40,653.30
42,607.15
93,931.07
1,758.27
31,725.53
33,483.80
74,829.85
28,576.34
11,455.16
26,209.20
10,275.15
17,121.18
3,301.82
20,423.00
38,044.37
15,934.05
4,149.16
20,083.21
38,336.90
4,199.08
Investments
Deferred tax assets (net)
Current assets, loans and advances
Inventories
Sundry debtors
Cash and bank balances
Loans and advances
Other current assets
8
9
10
11
12
12,304.82
15,346.48
7,541.24
9,648.16
1,558.74
46,399.44
Less: Current liabilities and provisions

Current liabilities
Provisions
14,899.06
12,926.32
27,122.82
11,498.55
3,205.97
69,652.72
13
14
24,910.82
9,278.20
34,189.02
35,463.70
93,931.07
26,558.44
7,630.34
34,188.78
12,210.66
74,829.85
Net current assets

Significant accounting policies
22
Notes to the financial statements
23
The schedules referred to above form an integral part of the Balance Sheet
As per our report attached
For and on behalf of the Board of Directors
For B S R & Co.

Dr. Tsutomu Une

Chairman
Arun Sawhney
Managing Director
Vikram Aggarwal
Partner
Ranjit Kohli
Director - Global Accounts
Sushil K. Patawari
Company Secretary
Place : Gurgaon
Place : Gurgaon
66
Profit and Loss Account for the year ended 31 December 2010
Schedule/ For the year ended For the year ended

Note
31 December 2010 31 December 2009
INCOME
Operating income
Less: Excise duty
15
Other income
16
EXPENDITURE
Materials consumed
Personnel expenses
Operating and other expenses
Provision for diminution in value of
long term investments
Interest expense
Depreciation, amortisation and impairment
56,873.25
152.23
56,721.02
10,017.82
66,738.84
47,974.89
147.29
47,827.60
6,047.40
53,875.00
17
18
19
23(5)
21,709.34
7,761.38
14,712.20
4,078.00
20,480.28
7,284.04
13,614.82
23(13)(b)
5
541.94
2,283.53
51,086.39
15,652.45
4,165.19
11,487.26
(2,532.23)
4.59
8,959.62
394.66
1,482.03
43,255.83
10,619.17
4,899.33
5,719.84
(8,265.83)
13.76
(2,532.23)
Profit before tax

Tax charge (net)
20
Profit after tax
Balance brought forward
Transfer from foreign projects reserve
Net profit available for appropriation
APPROPRIATIONS
Proposed dividend
842.08
Tax on proposed dividend
139.86
Transfer to general reserve
1,149.00
Surplus/ (deficit) carried forward to
6,828.68
Reserves and Surplus (Schedule 2)
Earnings per share ( Rs.)
21
Basic - Par value of Rs. 5 per share
27.30
Diluted - Par value of Rs. 5 per share
23.75
22
23
The schedules referred to above form an integral part of the Profit and Loss Account
(2,532.23)
For B S R & Co.

Dr. Tsutomu Une

Chairman
Arun Sawhney
Managing Director
Vikram Aggarwal
Partner
Ranjit Kohli
Sushil K. Patawari
Company Secretary
Place : Gurgaon
Place : Gurgaon
67
13.61
10.74
Cash Flow Statement for the year ended 31 December 2010

A. CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxes
Adjustments for :
Fixed assets written off
Reversal of deferred employees compensation
Unrealised foreign exchange gain
Fair valuation gain on options
Dividend income
Profit on sale of current investments
Unclaimed balances/ excess provision written back
Profit on sale of assets (net)
Provison for diminution in value of long term investments
(Reversal)/ provision for diminution in value of current investments
Interest expense
Interest income
Provision / write-off of doubtful debts, advances and other current assets
Operating profit/ (loss) before working capital changes
Adjustments for :
Increase in inventories
Decrease/ (increase) in sundry debtors
Decrease/ (increase) in loans and advances
Increase in other current assets
Increase in current liabilities and provisions
For the year ended

31 December 2010
For the year ended

31 December 2009
15,652.45
10,619.17
2,283.53
86.04
(3.45)
(856.52)
(5,473.50)
(13.06)
(2,255.03)
(225.79)
(260.59)
4,078.00
(4.36)
541.94
(1,451.70)
166.80
(3,387.69)
12,264.76
1,482.03
12.00
(8.17)
(1,818.26)
(8,932.47)
(9.54)
(420.33)
(1,116.76)
(237.34)
53.92
394.66
(945.47)
48.71
(11,497.02)
(877.85)
(2,594.24)
2,050.68
171.05
(496.19)
4,524.89
3,656.19
15,920.95
(4,232.08)
11,688.87
(319.64)
(5,410.08)
(112.09)
(14.42)
2,453.38
(3,402.85)
(4,280.70)
(2,373.64)
(6,654.34)
Cash generated from/ (used in) operating activities before taxes

Direct taxes paid (net of refunds)
Net cash generated from/ (used in) operating activities
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of fixed assets
(3,283.58)
(2,747.61)
Proceeds from sale of fixed assets
769.65
358.56
Purchase of certificates of deposits
(3,922.74)
Investment in subsidiaries
(2,404.49)
(Increase)/ decrease in fixed deposit with a maturity more than 90 days
(18,820.15)
3,865.19
Sale proceeds of investments (net of expenses)
2,396.66
614.28
Decrease in loans/ advances to subsidiaries
1,494.18
324.42
Increase/ (decrease) in secured loans to employees
2.41
(8.02)
Interest received
672.51
849.34
Dividend received
13.06
9.54
Net cash (used in)/ generated from investing activities
(20,678.00)
861.21
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of capital (including premium)
267.20
13.44
Increase/ (decrease) in short term bank borrowings (net)
7,607.29
(1,737.94)
Proceeds from long term bank borrowings
3,733.15
Re-payment of long term bank borrowings

(1,152.71)
(Decrease)/ increase in other borrowings (net)

(19.78)
15.17
Short term borrowings from non convertible debentures
1,600.00
2,000.00
Re-payment of short term borrowings of non convertible debentures
(1,600.00)
(2,000.00)
Interest paid
(520.32)
(432.09)
Net cash (used in)/ generated from financing activities
9,914.83
(2,141.42)
INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS
925.70
(7,934.55)
Cash and cash equivalents at the beginning of the year
689.31
8,622.07
Effect of exchange (gain)/ loss on cash and cash equivalents
3.30
1.79
Cash and cash equivalents at the end of the year
1,618.31
689.31
Notes :
Cash and cash equivalents include :
Cash and cheques in hand and remittances in transit
101.74
68.05
With banks in :
Current accounts
66.57
121.26
Deposit accounts
1,450.00
500.00
1,618.31
689.31
Add: Restricted cash
Fixed deposit pledged (restricted cash)
0.86
0.79
Unclaimed dividend
56.04
66.33
Fixed deposit more than 90 days
25,447.61
6,784.81
Cash and bank balances at the end of the year
27,122.82
7,541.24
Note: The above cash flow statement has been prepared under the indirect method set out in Accounting Standard 3 'Cash Flow Statement' specified in the
Companies (Accounting Standards) Rules, 2006.
For B S R & Co.

Dr. Tsutomu Une
Chairman
Arun Sawhney
Managing Director
Vikram Aggarwal
Partner
Ranjit Kohli
Sushil K. Patawari
Company Secretary
Place
Dated
Place
Dated
: Gurgaon
: 22 February 2011
: Gurgaon
: 22 February 2011
68
Schedules forming part of the financial statements for the year ended 31 December 2010
As at
As at
31 December 31 December
2010
2009
Schedule - 1
Share Capital
Authorised
598,000,000 (previous year 598,000,000) equity shares of Rs. 5 each
100,000 (previous year 100,000) cumulative preference shares of Rs. 100 each
Issued, subscribed and paid up
421,040,693 (previous year 420,417,358) equity shares of Rs. 5 each fully paid
(Refer to note 6 of Schedule 23)
2,990.00
10.00
3,000.00
2,990.00
10.00
3,000.00
2,105.20
2,105.20
2,102.09
2,102.09
Notes :
1. Issued, subscribed and paid up capital includes:
[i] 293,698,988 (previous year 293,698,988) equity shares of Rs. 5 each allotted as fully paid bonus shares by
capitalisation out of share premium and reserves.
[ii] 6,562,308 (previous year 6,562,308) equity shares of Rs. 5 each allotted as fully paid up pursuant to a contract
without payment being received in cash.
[iii] 6,332,219 Global Depository Shares (GDSs) (previous year 5,501,185) representing 6,332,219 (previous year
5,501,185) equity shares of Rs. 5 each constituting 1.50% (previous year 1.31%) of the issued subscribed and
paid-up share capital of the Company.
2. 268,711,323 (previous year 268,711,323) equity shares of Rs. 5 each are held by Daiichi Sankyo Co. Ltd., Japan,
the holding company, also being the ultimate holding company.
Schedule - 2
(a) Capital reserve
Balance at the beginning of the year
Add: Forfeiture of equity share warrants
(b) Amalgamation reserve
(c) Share premium account
Add: Received during the year
Add: Transferred from employees stock option outstanding
Less: Premium payable on redemption of Zero Coupon
Foreign Currency Convertible Bonds (FCCBs)
Less: Tax reversal for premium payable on redemption of FCCBs
(d) Foreign projects reserve
Less: Transfer to Profit and Loss Account
(e) Hedging reserve (net of tax)
Additions during the year
69
5.41
1,756.59
5.41
1,762.00
43.75
5.41
43.75
35,564.74
200.08
8.21
35,773.03
954.34
37,862.17
11.26
1.89
37,875.32
1,083.41
34,818.69
1,227.17
35,564.74
4.59
4.59
18.35
13.76
4.59
(28.73)
163.14
134.41
(792.58)
763.85
(28.73)
As at
As at
2010
2009
(f) Employees stock option outstanding
Less: Reversal of deferred employee compensation
Less: Transferred to share premium on exercise of stock option
(g) General reserve
Add: Transfer from Profit and Loss Account
(h) Surplus/ (deficit) brought forward from the Profit and Loss Account
Schedule 3
Secured loans
Loans from banks
57.61
3.45
8.21
67.67
8.17
1.89
45.95
57.61
4,370.28
1,149.00
5,519.28
6,828.68
49,152.76
4,370.28
4,370.28
(2,532.23)
37,485.42
1,953.85
1,953.85
1,758.27
1,758.27
11,638.38
19,672.40
4,676.95
20,475.40
9,184.83
157.69
40,653.30
6,395.71
177.47
31,725.53
19,672.40
1,239.65
19.78
1,112.19
19.78
Notes :
These loans are borrowed against working capital facilities sanctioned by scheduled banks.
The Company has created a charge, on paripassu basis, by hypothecation of the current
assets (both present and future) of the Company.
Schedule 4
Unsecured loans
Short term loans from banks
Zero coupon foreign currency convertible bonds (FCCBs) *#
Other loans #
From banks
From others
Notes :
* The Company has outstanding FCCBs aggregating to US $ 440 million. The
bondholders have an option to convert FCCBs into equity shares of the Company at a
price of Rs. 716.32 per share (subject to adjustment, if any) with a fixed exchange rate
of Rs. 44.15 per US $ at any time on or after 27 April 2006 but before 9 March 2011.
Further, these FCCBs may be redeemed, in whole, at the option of the Company at
any time on or after 18 March 2009, but on or before 6 February 2011, subject to the
satisfaction of certain conditions. These FCCBs are redeemable on 18 March 2011,
at a premium of 26.765 percent (net of withholding tax) of their principal amount
unless previously converted, redeemed, purchased or cancelled.
# Loans due for repayment within one year:
Zero coupon foreign currency convertible bonds (FCCBs)

Other loans:
From banks
From others
70
262.31
912.86
211.00
4,065.76
2,982.52
94.37
361.74
798.30
26,209.20
23,867.45
76.51
4.58
905.25
2,471.05
150.00
101.69
Additions *
173.69
259.49
3,692.17
18,386.24
1,046.95
366.76
As at
1 January
2010
1,698.62
640.77
52.87
211.00
361.74
1.23
926.52
98.40
46.86
28,576.34
26,209.20
1,122.30
892.67
248.97
264.07
4,597.42
19,930.77
1,098.55
421.59
71
#
@
1 - 6 years
Remaining
useful lives
1 - 5 years
As at 31 December 2010
Gross block Accumulated depreciation
48.48
12.51
253.74
253.73
13.81
13.81
0.06
0.06
110.94
738.57
8.00
Gross block
Accumulated
Impairment
depreciation
recognised
19.35
74.09
257.88
463.40
4.23
3.56
17.50
17.29
0.21
Net block
Net block
35.97
0.01
46.30
211.00
361.74
428.31
35.86
20.31
11,455.16
10,275.15
610.46
551.74
8.57
796.36
9,006.95
368.00
113.08
17,121.18
15,934.05
511.84
340.93
248.97
255.50
3,801.06
10,923.82
730.55
308.51
Net block
1.23
36.76
15,934.05
378.65
347.94
173.69
259.49
3,088.92
10,692.52
722.59
270.25
As at 31
December
2009
Net block
As at 31
December
2010 **
Accumulated depreciation
11.63
85.03
1,103.52
507.55
Gross block
1.23
48.39
85.03
2,283.53
1,482.03
122.55
101.38
8.57
193.11
1,741.54
79.50
36.88
Accumulated depreciation,
amortisation and impairment
For the year
Deletions/
As at 31
adjustments
December
2010 **
The impairment loss has been determined using net selling price and owing to the prevelant market conditions of the product which was manufactured/ to be manufactured.
Building
Plant and machinery
Furniture and fixture
Description
Freehold land includes land valued at Rs. 25.48 (previous year Rs. 25.48) pending registration in the name of the Company.
The impairment loss recognised during the year for each class of asset is given hereunder. No impairment loss was recognised during the previous year.
Computer software
Patent, trade marks, designs and licences
Description
@@ Remaining useful lives of intangible assets as at 31 December 2010 is as under:
Land
Building
Plant and machinery
Vehicles
Description
10,275.15
9,300.67
534.21
211.00
361.74
450.36
603.25
7,693.72
324.36
96.51
Deletions/
As at
As at 1
adjustments ^ 31 December January 2010
2010 **
Gross block
Notes:
* Additions to fixed assets include Rs. 198.20 (previous year Rs. 221.98) towards assets used for research and development.
^
Deletion/ adjustments includes assets pertaining to New Drug Discovery Research Centre (Refer to note 4 of Schedule 23).
**
The above includes the following assets held for disposal, which are being carried at the lower of their net block and net realisable value:
Total
Previous year
Tangible assets
Land
Freehold #
Leasehold
Buildings @
Plant and machinery @
Furniture and fixtures @
Vehicles
Intangible assets
Product development
Patent rights, trade marks, designs and
licences@@
Computer software@@
Non-compete fee
Description
Fixed assets
SCHEDULE - 5
Number of Shares
Face value 2010
2009
per shares
Class of
Shares
Schedule 6
Investments
CURRENT
Trade:
Quoted (fully paid up)
Krebs Biochemicals & Industries Limited
Equity shares
Rs. 10
1,050,000
1,050,000
Non trade:
Unquoted
Certificate of deposits
As at
31 Dec.
2010
As at
31 Dec.
2009
39.69
39.69
35.33
35.33
3,922.74
3,922.74
LONG TERM
Investments in shares of companies (fully
paid-up, except stated otherwise)
Trade :
Quoted
Zenotech Laboratories Limited
Equity shares
Rs. 10
16,127,293
16,127,293
2,463.53
2,463.53
2,463.53
2,463.53
Unquoted
Shimal Research Laboratories Limited
Shivalik Solid Waste Management Limited
Biotech Consortium India Limited
Nimbua Greenfield (Punjab) Limited
Equity shares
Equity shares
Equity shares
Equity shares
Rs. 10
Rs. 10
Rs. 10
Rs. 10
9,340,000
20,000
50,000
187,500
9,340,000
20,000
50,000
250,000
934.00
0.20
0.50
1.88
936.58
934.00
0.20
0.50
2.50
937.20
Non trade:
Quoted
Fortis Healthcare Limited
The Great Eastern Shipping Company Limited
Equity shares
Equity shares
Rs. 10
Rs. 10
14,097,660
500
140.98
0.03
141.01
Equity shares
Equity shares
10% NCRP **
Equity shares
Equity shares
Equity shares
Equity shares
Equity shares
Preference Share
Equity shares
Rs. 10
Rs. 10
Rs. 10
Rs. 10
Rs. 10
Rs. 10
Rs. 100
Re. 1
Rs. 1,000
Rs. 10
25,008,400
3,100,020
250
3,100,000
14,900,700
12,500,000
4,900
24,500,000
2,000,000
50,000
25,008,400
3,100,020
250
3,100,000
14,900,700
12,500,000
4,900
24,500,000
2,000,000
50,000
250.08
31.00
*
17.25
783.01
735.00
535.22
24.50
200.00
0.50
250.08
31.00
*
17.25
783.01
735.00
535.22
24.50
200.00
0.50
Ordinary shares
Equity shares
Equity shares
Ordinary shares
Ordinary shares
Ordinary shares
Euro 100
HK $ 1
Euro 9
RM 1
Naira 1
Bahts 100
3,939,716
2,400,000
800,000
3,189,248
13,070,648
206,670
3,939,716
2,400,000
800,000
3,189,248
13,070,648
206,670
28,947.75
9.84
3,400.02
36.56
7.40
21.20
34,999.33
42,361.87
(4,317.50)
38,044.37
1,059.22
926.69
36,985.15
28,947.75
9.84
3,400.02
36.56
7.40
21.20
34,999.33
38,576.40
(239.50)
38,336.90
2,639.88
3,807.18
35,697.02
Subsidiary companies:
Domestic
Vidyut Investments Limited
Ranbaxy Drugs Limited
Ranbaxy Drugs and Chemicals Company
Solus Pharmaceuticals Limited
Rexcel Pharmaceuticals Limited
Gufic Pharma Limited
Ranbaxy Life Sciences Research Limited
Ranbaxy Life Sciences Research Limited^
Ranbaxy SEZ Limited
Overseas
Ranbaxy (Netherlands) BV., The Netherlands #
Ranbaxy (Hongkong) Ltd., Hongkong
Ranbaxy Pharmacie Generiques SAS, France
Ranbaxy (Malaysia) Sdn. Bhd., Malaysia
Ranbaxy (Nigeria) Ltd., Nigeria
Ranbaxy Unichem Co. Ltd., Thailand
Less: Provision for diminution in value of long term investments (Refer to note 5 of Schedule 23)
Aggregate book value of quoted investments (net of provision for diminution)
Market value of quoted investments
Aggregate book value of unquoted investments (net of provision for diminution)
Notes:
* Rounded off to Rs. Nil.
** NCRP denotes Non convertible redeemable preference shares.
^ Partly paid-up Rs. 100 per share.
# includes Rs. 7,028.59 (previous year Rs. 7,028.59) paid as share premium reserve.
72
Schedule - 7
Deferred tax asset arising on account of :
Provision for doubtful debts, advances and other current assets
Provision for employee retirement benefits
Revaluation of external commercial borrowings
Provision for diminution in value of long term investments
Tax losses carried forward
Others
Less: Deferred tax liability arising on account of :
Others
Less: Deferred tax asset not carried forward
Deferred tax assets (net)
As at
As at
2010
2009
176.18
181.00
163.61
636.34
2,867.81
2.08
4,027.02
134.06
80.91
237.59
54.27
7,960.24
2.46
8,469.53
2,601.67
162.17
2,763.84
1,263.18
2,807.68
165.94
2,973.62
1,296.83
4,199.08
73.63
4,788.80
444.13
4,826.21
74.15
3,853.78
398.64
4,778.33
3,639.14
1,127.15
14,899.06
2,501.85
698.07
12,304.82
0.06
0.65
1,062.66
370.60
1,433.32
2,167.05
294.75
2,462.45
Note:
In view of accumulated tax losses and absence of virtual certainty, no deferred tax asset (net) has been recognised as at 31 December
2010. As at 31 December 2009, on the basis of profit from operations made subsequent to year end, profit on sale of materials relating
to a First to File (FTF) product in the United States of America, milestone payment from an exclusivity settlement and certain other
factors, the Company believed that there was virtual certainty in respect of the carrying amount of net deferred tax asset.
Schedule - 8
Inventories
Stores and spares
Raw materials
Packaging materials
Work-in-progress
Finished goods
Own manufactured
Traded
Schedule - 9
Sundry debtors *
(Considered good, except where provided for)
Debts outstanding for a period exceeding six months
Secured
Unsecured
Considered good
Considered doubtful
Other debts
Secured
Unsecured, considered good
198.29
330.71
11,665.31
12,848.07
11,863.60
13,178.78
13,296.92
15,641.23
Less: Provision for doubtful debts
370.60
294.75
12,926.32
15,346.48
* Refer to note 17 of Schedule 23 for dues from parties under the same management as defined under Section 370
(1-B) of the Companies Act, 1956.
73
As at
As at
2010
2009
Schedule - 10
Cash balance on hand
Cheques in hand
Remittances in transit
Balances with scheduled banks in:
- Current accounts
- Deposit accounts #
- Unclaimed dividend accounts
Balances with banks other than scheduled banks in:
- Current accounts $
5.33
96.41
4.75
3.35
59.95
18.83
26,898.47
56.04
53.16
7,285.60
66.33
47.74
68.10
27,122.82
7,541.24
# Includes deposits of Rs. 0.86 (previous year Rs 0.79) pledged with Government Authorities.
$ Name of the banks (other than scheduled banks) and balance lying with each such bank on current account
alongwith the maximum balance outstanding at anytime during the year is given below:
Balance
1 AB Vilnius Bankas, Kaunas, Lithuania

2 ABN AMRO Bank, Moscow, Russia
3 Banque Internationale Pour Le
Commerce Et Lindustrie du
Cameroun, Douala, Cameroon
4 Barclays Bank of Kenya Ltd, Nairobi
Kenya
5 Bank Handlowy W Warszawie SA, Warsaw,
Poland
6 Calyon Cor porate, HO Chi Minh,
Vietnam
7 Calyon Corporate, Kiev, Ukraine
8 Citibank, Almaty, Kazakhstan
9 Citibank, Sofia, Bulgaria
10 Credit Du Maroc, Boulevard
Mohammed V.
Casablanca, Morocco
11 Myanmar Investment and Commercial
Bank Yangon, Myanmar
12 Societe Generale De Banques Au Cameroun
Douala, Ivory Coast
13 The Hongkong & Shanghai Banking
Corporation, Singapore
14 Standbic Bank, Nairobi, Kenya
15 Standbic Bank Zimbabwe Limited
Causeway Zimbabwe, Harare
16 The Hongkong & Shanghai Banking
Corporation, Dubai, UAE
17 Bank of China, China
As at 31
December
2010
5.24
7.48
7.18
Maximum balance
during the year ended
As at 31 December
31 December
31 December
2010
2009
2009
10.85
11.51
17.73
10.21
119.51
93.14
4.41
10.45
7.56
1.44
0.45
0.54
0.52
16.24
2.11
2.71
5.72
3.49
1.23
9.72
0.55
0.15
19.17
0.02
1.82
0.49
50.27
18.22
3.47
0.77
63.83
21.36
5.10
0.90
0.04
2.17
3.88
6.67
0.69
5.13
6.51
9.52
0.60
6.85
1.41
5.86
1.77
12.85
3.79
7.47
3.67
2.43
2.95
6.74
6.73
2.21
47.74
68.10
4.16
74
Schedule - 11
Loan and advances
Secured loans to employees *
Unsecured loans and advances:
Loans to employees
Advances recoverable in cash or in kind or for value to be received
Considered good
Considered doubtful
Balances with central excise and customs authorities
Loans and advances to subsidiaries #
Minimum alternate tax (MAT) credit entitlement
As at
As at
2010
2009
49.94
52.35
90.00
93.30
1,716.33
1,285.43
143.42
73.83
1,294.34
1,962.65
39.60
1,533.78
8,308.34
4,720.65
11,641.97
9,721.99
Less: Provision for doubtful advances
143.42
73.83
11,498.55
9,648.16
* Includes amount due from an officer of the Company of Rs. 3.98 (previous year Rs. 4.02). The maximum
balance at any time during the year was Rs. 4.07 (previous year Rs. 4.02).
#Refer to note 21 of schedule 23 for loans and advances to parties under the same management as defined under
Section 370 (1-B) of the Companies Act, 1956.
Schedule - 12
(Unsecured, considered good, except where provided for)
Export incentives accrued
Payable towards unrealised gain on options/ forward contracts
Insurance claims receivable
Interest accrued but not due
Others
Considered good
Considered doubtful
Less: Provision for doubtful other current assets
Schedule - 13
Current liabilities
Sundry creditors ^
Dues to micro and small enterprises (Refer to note 19 to Schedule 23)
Others #
Book overdraft
Interest accrued but not due on loans
Unclaimed dividend *
Payable towards unrealised loss on currency options/ forward contracts
Advance from customers
Other liabilities $
^ Includes due to subsidiary companies / entities.
# Includes payable to employees such as salary, bonus etc.
$ Includes statutory dues payable in respect of employees benefits such as
provident fund, ESI etc.
*Not due for deposit to Investor Education & Protection Fund.
75
799.71
1,252.51
8.61
1,016.05
664.09
559.63
12.41
236.86
129.09
16.35
3,222.32
16.35
3,205.97
85.75
25.84
1,584.58
25.84
1,558.74
22.36
12,425.40
294.39
58.29
56.04
11,261.14
209.61
583.59
24,910.82
21.69
9,053.41
49.78
36.67
66.33
16,669.65
317.97
342.94
26,558.44
1,769.56
711.43
48.20
371.62
725.52
7.54
Schedule - 14
Provisions
Employee retirement benefits #
Income-tax [net of advance tax Rs. 7,199.98 (previous year Rs. 2,760.20)]
Premium payable on redemption of Foreign Currency Convertible Bonds
Proposed dividend
# (Refer to note 11 of Schedule 23)
As at
As at
2010
2009
2,416.52
231.62
5,648.12
842.08
139.86
9,278.20
2,108.31
828.24
4,693.79
7,630.34
Year ended
Year ended
2010
2009
Schedule - 15
Operating income
Sales
Domestic
Export
Royalty, technical know-how and product development *
Export incentives
Income from settlement agreements
Non-compete fee (Refer to note 4 of Schedule 23)
Others
* Includes prior period income Rs. 136.90 (previous year Rs. nil)
Schedule - 16
Other income
Interest* [gross of tax deducted at source Rs.135.25
(previous year Rs. 179.58)]
Net foreign exchange gain (other than on loans)
[Refer to note (13)(a) of Schedule 23]
Exchange gain (net) on loans [Refer to note (13)(a) of Schedule 23]
Dividend from overseas subsidiaries
[gross of tax deducted at source Rs. 0.38 (previous year Rs. 0.43)]
Profit on sale of assets [net of loss Rs. 30.55 (previous year Rs. 26.54)]
Profit on sale of current investments
Profit on sale of investment in subsidiary
Unclaimed balances / excess provision written back
Reversal of provision for diminution in the value of current investment
Lease rental [gross of tax deducted at source Rs. 6.30
(previous year Rs. nil)] [Refer to note (10)(b) of Schedule 23]
Reversal of deferred employees compensation
Miscellaneous
Notes :
* Represents Interest on:
Current investments - non trade
Income-tax refunds
Loans and deposits:
- Short term deposits with banks
- Subsidiary companies
- Employee loans
- Others
76
18,231.58
34,435.51
52,667.09
790.14
786.57
2,292.59
210.00
126.86
4,206.16
56,873.25
16,981.62
28,377.47
45,359.09
476.68
546.73
1,441.15
151.24
2,615.80
47,974.89
1,451.70
945.47
4,159.50
1,790.40
1,406.98
13.06
1,493.13
9.54
260.59
237.34
2,255.03
225.79
4.36
63.00
420.33
1,116.76
3.45
174.36
10,017.82
8.17
26.26
6,047.40
133.05
5.50
2.35
1,307.52
0.16
5.34
0.13
1,451.70
936.35
0.36
5.51
0.90
945.47
Schedule - 17
Material consumed
Raw materials consumed #
Stores and spares consumed
Packaging materials consumed
Finished goods purchased
Increase in work in progress and finished goods
Opening stock
Work-in-progress
Finished goods
Own manufactured
Traded
Less :
Closing stock
Work-in-progress
Finished goods
Own manufactured
Traded
Net increase
Increase/(decrease) in excise duty
Year ended
31 December 2010
Year ended
31 December 2009
13,671.12
939.04
1,961.13
6,520.52
13,693.16
1,027.31
1,533.43
4,812.06
4,778.33
3,894.36
2,501.85
698.07
7,978.25
2,791.79
719.42
7,405.57
4,826.21
4,778.33
3,639.14
1,127.15
9,592.50
2,501.85
698.07
7,978.25
(1,614.25)
231.78
21,709.34
(572.68)
(13.00)
20,480.28
6,850.45
571.78
6,478.80
477.85
339.15
7,761.38
327.39
7,284.04
2,287.52
1,642.43
1,579.54
1,480.71
1,258.76
821.11
2,098.36
1,367.98
2,340.90
1,046.52
1,055.64
804.81
44.68
156.53
405.07
570.10
531.83
515.05
413.82
35.92
138.90
339.74
661.39
482.99
454.89
503.75
# Includes site variation cost amounting to Rs. 191.76

(previous year Rs. 412.60) paid to subsidiaries.
Schedule - 18
Personnel expenses
Salaries, wages and bonus
Contribution to provident and other funds (Refer to note 11
of Schedule 23)
Workmen and staff welfare
Schedule - 19
Advertising and sales promotion
Power and fuel
Legal and professional (Refer to note 9 of Schedule 23)
Freight, clearing and forwarding
Travel and conveyance
Processing charges
Repairs and maintenance
Buildings
Plant and machinery
Others
Market research
Rent [Refer to note (10)(a) of Schedule 23]
Clinical trials
Commission
77
Regulatory filing fee

Communication
Insurance
Rates and taxes
Recruitment and training
Running and maintenance of vehicles
Conferences and meetings
Analytical charges
Printing and stationery
Claims paid
Excise duty
Cash discounts
Provision / write-off of doubtful debts, advances and other
current assets
Provision for diminution in value of current investment
Miscellaneous
Schedule - 20
Tax charge (benefit)
Current income-tax
Minimum alternate tax credit entitlement
Deferred tax charge
Fringe benefit tax
Tax - earlier years #
Year ended
31 December 2010
301.37
282.83
294.85
219.21
159.73
137.77
137.44
310.66
99.24
153.57
25.59
12.88
86.04
166.80
Year ended
31 December 2009
264.23
222.87
298.02
182.03
124.26
129.24
77.11
81.01
84.22
100.27
24.74
54.46
12.00
48.71
617.07
14,712.20
53.92
525.94
13,614.82
3,625.03
(3,587.69)
4,117.42
10.43
4,165.19
3,546.90
(3,501.65)
4,807.81
35.50
10.77
4,899.33
11,487.26
(803.00)
10,684.26
5,719.84
(904.20)
4,815.64
420,731,680
420,380,856
2,071,594
27,119,165
449,922,439
5.00
819,480
27,119,165
448,319,501
5.00
27.30
23.75
13.61
10.74
1,306,730
23,834,333
5,418,730
#Net of credit adjusted of Rs. 23.34 (previous year Rs. 6.50)

Schedule - 21
Earnings per share
Net profit attributable to equity shareholders
Net profit available for equity shareholders
Less: Exchange gain on FCCBs
B
Number of weighted average equity shares
C
Basic
Effect of dilutive equity shares on account of *
Employees stock options outstanding
Foreign Currency Convertible Bonds
D
Diluted
Nominal value of equity share (Rs.)
(A/C)
Basic
(B/D)
Diluted
* Following are the potential equity shares considered to be
anti dilutive in nature, hence these have not been adjusted to
arrive at the dilutive earning per share:
78
Schedule - 22
Basis of accounting
These financial statements have been prepared and presented under the historical cost convention on an accrual basis
of accounting and comply with the Accounting Standards as specified in the Companies (Accounting Standards)
Rules, 2006, other pronouncements of the Institute of Chartered Accountants of India, the relevant provisions of the
Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India, to the extent applicable.
Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent liabilities at the date of the financial statements, and reported amounts of revenues and expenses for
the year. Examples of such estimates include provisions of future obligation under employee retirement benefit plans,
the useful lives of fixed assets and intangible assets, provision for sales return, customer claims, expiry of exclusivity
periods, expiry of drugs and impairment of assets. Actual results could differ from these estimates. Any revision to
accounting estimates is recognised prospectively in the current and future periods.
Fixed assets and depreciation
Fixed assets are stated at the cost of acquisition or construction, less accumulated depreciation and impairment losses.
Cost comprises the purchase price and any attributable costs of bringing the asset to its working condition for intended
use.
Borrowing costs directly attributable to acquisition or construction of fixed assets, which necessarily take a substantial
period of time to be ready for the intended use, are capitalized.
Depreciation on fixed assets, except leasehold improvements (included in furniture and fixture), is provided on pro-rata
basis, using the straight-line method and at the rates specified in Schedule XIV to the Companies Act, 1956, which in
the opinion of the management are reflective of the estimated useful lives of the fixed assets. Leasehold improvements
are depreciated over their estimated useful life, or the remaining period of lease from the date of capitalization,
whichever is shorter.
Assets costing individually Rs. 5,000 or less are fully depreciated in the year of purchase.
Intangible assets and amortization
Intangible assets comprise patents, trademarks, designs and licenses, computer software, non-compete fee and product
development rights, and are stated at cost less accumulated amortization and impairment losses, if any.
These assets are amortized over their estimated useful lives on a straight-line basis, commencing from the date the asset
is available to the Company for its use. The management estimates the useful lives for the various intangible assets as
follows:
Years
Patents, Trademarks, Designs and Licenses 5
Computer Software
6
Non-Compete Fee
Term of the respective agreements ranging from 1 to 10 years
Product Development
5
Impairment of assets
The carrying values of assets are reviewed at each reporting date to determine if there is indication of any impairment.
If any indication exists, the assets recoverable amount is estimated. For assets that are not yet available for use, the
recoverable amount is estimated at each reporting date. An impairment loss is recognised whenever the carrying
amount of an asset or its cash generating unit exceeds its recoverable amount and is recognised in the Profit and Loss
Account. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the
carrying amount that would have been determined net of depreciation or amortisation, if no impairment loss had
been recognised.
Revenue recognition
Revenue from sale of goods is recognized on transfer of significant risks and rewards of ownership to the customers.
Revenue includes excise duty and are net of sales tax, value added tax and applicable discounts and allowances.
Allowances for sales returns are estimated and provided for in the year of sales.
79
Schedule - 22
Service income is recognised as per the terms of contracts with customers when the related services are rendered, or
the agreed milestones are achieved.
Income from royalty, technical know-how arrangements, exclusivity and patents settlement, licensing arrangements is
recognized on an accrual basis in accordance with the terms of the relevant agreement.
Non-compete fee is recognized over the term of the agreement on a straight line basis.
Export incentive entitlements are recognised as income when the right to receive credit as per the terms of the scheme
is established in respect of the exports made, and where there is no certainty regarding the ultimate collection of the
relevant export proceeds.
Profit on sale of investments is recognized as income in the period in which the investment is sold/ disposed off.
Dividend income is recognised when the right to receive the income is established. Income from interest on deposits,
loans and interest bearing securities is recognised on the time proportion method.
Investments
Investments that are readily realizable and intended to be held for not more than a year are classified as current
investments. All other investments are classified as long-term investments.
Current investments are carried at the lower of cost or fair value, determined on an individual investment basis. Longterm investments are carried at cost less any other-than-temporary diminution in value, determined, separately in
respect of individual investment.
Inventories
Raw materials, packaging materials and stores & spare parts are carried at cost. Cost includes purchase price, (excluding
those subsequently recoverable by the enterprise from the concerned revenue authorities), freight inwards and other
expenditure incurred in bringing such inventories to their present location and condition. In determining the cost,
weighted average cost method is used. The carrying cost of raw materials, packaging materials and stores and spare
parts are appropriately written down when there is a decline in replacement cost of such materials and finished products
in which these will be incorporated are expected to sold below cost.
Work in progress, manufactured finished goods and traded goods are valued at the lower of cost and net realisable value.
Work in progress includes Active Pharmaceutical Ingredients lying at plants for captive consumption. The comparison
of cost and net realisable value is made on an item by item basis. Cost of work in progress and manufactured finished
goods is determined on the weighted average basis and comprises direct material, cost of conversion and other costs
incurred in bringing these inventories to their present location and condition. Cost of traded goods is determined on
a weighted average basis.
Excise duty liability is included in the valuation of closing inventory of finished goods.
Cash and cash equivalent
Cash and cash equivalents comprise cash balances on hand, cash balance with bank, and highly liquid investments with
remaining maturities, at the date of purchase/investment, of three months or less.
Research and development costs
Revenue expenditure on research and development is expensed off under the respective heads of account in the year
in which it is incurred.
Expenditure on development activities, whereby research findings are applied to a plan or design for the production
of new or substantially improved products and processes, is capitalised, if the cost can be reliably measured, the
product or process is technically and commercially feasible and the Company has sufficient resources to complete the
development and to use and sell the asset. The expenditure capitalised includes the cost of materials, direct labour and
an appropriate proportion of overheads that are directly attributable to preparing the asset for its intended use. Other
development expenditure is recognised in the Profit and Loss Account as an expense as incurred.
Capitalised development expenditure is stated at cost less accumulated amortisation and impairment losses. Fixed
assets used for research and development are depreciated in accordance with the Companys policy as stated above.
Materials identified for use in research and development process are carried as inventories and charged to Profit and
Loss Account on issuance of such materials for research and development activities.
Employee stock option based compensation
The Company calculates the compensation cost based on the intrinsic value method wherein the excess of value of
80
Schedule - 22
underlying equity shares as of the date of the grant of options over the exercise price of such options is recognised
and amortised over the vesting period on a straight line basis. The Company follows SEBI guidelines for accounting
of employee stock options.
Foreign currency transaction, derivatives and hedging
Transactions in foreign currency are recorded at the exchange rate prevailing at the date of the transaction. Exchange
differences arising on foreign currency transactions settled during the year are recognised in the Profit and Loss
Account.
Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date, not covered by forward
exchange contracts, are translated at year end rates. The resultant exchange differences are recognised in the Profit and
Loss Account. Non-monetary assets are recorded at the rates prevailing on the date of the transaction.
Profit and Loss items at representative offices located outside India are translated at the respective monthly average
rates. Monetary Balance sheet items at representative offices at the balance sheet date are translated using the year-end
rates. Non-monetary Balance Sheet items are recorded at the rates prevailing on the date of the transaction.
The Company uses various forms of derivative instruments such as foreign exchange forward contracts, options, cross
currency swaps and interest rate swaps to hedge its exposure on account of movements in foreign exchange and interest
rates.These derivatives are generally entered with banks and not used for trading or speculation purposes. These
derivative instruments are accounted as follows:
For forward contracts which are entered into to hedge the foreign currency risk of the underlying outstanding
on the date of entering into that forward contract, the premium or discount on such contracts is amortized as
income or expense over the life of the contract. Any profit or loss arising on the cancellation or renewal of forward
contracts is recognized as an income or expense for the period. The exchange difference on such a forward
exchange contract is calculated as the difference between(a) the foreign currency amount of the contract translated at the exchange rate at the Balance Sheet date, or the
settlement date where the transaction is settled during the reporting period, and
(b) the same foreign currency amount translated at the later of the date of inception of the forward exchange
contract and the last reporting date. Such exchange differences are recognized in the Profit and Loss Account
in the reporting period in which the exchange rates change.
Other derivatives such as forward and option contracts, cross currency swaps and interest rate swaps etc are fair
valued at each Balance Sheet date. The resultant gain or loss (except relating to effective portion of cash flow
hedges) from these transactions are recognised in the Profit and Loss Account.The gain or loss on effective portion
of cash flow hedges is recorded in the Hedging Reserve (reported under the head Reserves and Surplus) until
occurrence of hedged transaction.Upon occurrence of the hedged transaction, such gain or loss is transferred to
the Profit and Loss Account of that period.To designate a derivative instrument as an effective cash flow hedge,
the management objectively evaluates and evidences with appropriate supporting documents at the inception
of each contract and throughout the period of hedge relationship whether the contract is effective in achieving
offsetting cash flows attributable to the hedged risk. The gain or loss on ineffective portion of cash flow hedge is
recognised in the Profit and Loss Account.
Employee benefits
Short term employee benefits
All employee benefits payable / available within twelve months of rendering the service are classified as short-term
employee benefits. Benefits such as salaries, wages and bonus etc., are recognised in the Profit and Loss Account in the
period in which the employee renders the related service.
Defined benefit plans
Defined benefit plans of the Company comprise gratuity, provident fund and pension plans.
Gratuity:
The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The
plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination
of employment of an amount based on the respective employees salary and the tenure of employment. Vesting occurs
upon completion of five years of service. The Company makes annual contributions to gratuity fund established as a
trust.
81
Schedule - 22
Provident fund
In respect of employees, the Company makes specified monthly contribution towards the employees provident fund to
the provident fund trust administered by the Company. The minimum interest payable by the provident fund trust to
the beneficiaries every year is notified by the Government. The Company has an obligation to make good the shortfall,
if any, between the return on respective investments of the trust and the notified interest rate.
Pension
The Company has an obligation towards pension, a defined benefit retirement plan covering eligible employees. The
plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination
of employment of an amount based on the respective employees salary and the tenure of employment. Vesting occurs
upon completion of 20 years of service.
Actuarial valuation
The liability in respect of defined benefit plans, other than provident fund schemes, is accrued in the books of account
on the basis of actuarial valuation carried out by an independent actuary primarily using the Projected Unit Credit
Method, which recognizes each year of service as giving rise to additional unit of employee benefit entitlement and
measure each unit separately to build up the final obligation. The obligation is measured at the present value of
estimated future cash flows. The discount rates used for determining the present value of obligation under defined
benefit plans, is based on the market yields on Government securities as at the balance sheet date, having maturity
periods approximating to the terms of related obligations. Actuarial gains and losses are recognised immediately in the
Profit and Loss Account. Gains or losses on the curtailment or settlement of any defined benefit plan are recognised
when the curtailment or settlement occurs.
The contributions made to provident fund trust are charged to Profit and Loss Account as and when these become
payable. In addition, the Company recognizes liability for shortfall in the plan assets vis--vis the fund obligation, if
any. The Guidance on implementing AS 15, Employee Benefits (revised 2005) issued by Accounting Standard Board
states that benefits involving employer established provident funds, which require interest shortfalls to be recompensed
are to be considered as defined benefit plans. Pending the issuance of the guidance note from the Actuarial Society of
India, the Companys actuary has expressed an inability to reliably measure provident fund liabilities. Accordingly, the
Company is unable to exhibit the related information.
Defined contribution plans
Under the superannuation scheme, a defined contribution plan, the Company pays fixed contributions and has no
obligation to pay further amounts. Such fixed contributions are recognized in the Profit and Loss Account on accrual
basis.
Other long term employee benefits
Compensated absences
As per the Companys policy, eligible leaves can be accumulated by the employees and carried forward to future periods
to either be utilised during the service, or encashed. Encashment can be made during service, on early retirement, on
withdrawal of scheme, at resignation and upon death of the employee. The value of benefits is determined based on
the seniority and the employees salary.
Long service award
As per the Companys policy, employees of the Company are eligible for an award after completion of a specified
number of years of service with the Company.
Actuarial valuation
The Company accounts for the liability for compensated absences payable in future and long service awards based
on an independent actuarial valuation using the projected unit credit method as at the year end. Actuarial gains and
losses are recognized immediately in the Profit and Loss Account. Gains or losses on the curtailment or settlement of
any defined benefit plan are recognized when the curtailment or settlement occurs.
Taxes on income
Income tax expense comprises current tax (i.e. amount of tax for the year determined in accordance with the Incometax law) and deferred tax charge or credit.
82
Schedule - 22
Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable
income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are
recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax
assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however,
where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only if there
is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed at each balance sheet date and
are written-down or written-up to reflect the amount that is reasonably / virtually certain (as the case may be) to be
realised.
Minimum alternative tax payable under the provisions of the Income Tax Act 1961 is recognized as an asset in the year
in which credit becomes eligible and is set off to the extent allowed in the year in which the Company becomes liable
to pay income taxes at the enacted tax rates.
Provisions, contingent liabilities and contingent assets
A provision is created when there is a present obligation as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is
made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of
resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Provision for onerous contracts, i.e. contracts where the expected unavoidable costs of meeting the obligations under
the contract exceed the economic benefits expected to be received under it, are recognized when it is probable that
an outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an
obligating event, based on a reliable estimate of such obligation.
The Company does not recognise assets which are of contingent nature until there is virtual certainty of realisability of
such assets. However, subsequently, if it becomes virtually certain that an inflow of economic benefits will arise, asset
and related income is recognised in the financial statements of the period in which the change occurs.
Leases
Lease arrangements, where the risks and rewards incidental to ownership of an asset substantially vest with the lessor,
are recognised as an operating lease.
Lease payments under operating leases are recognized as expense on a straight-line basis over the lease period.
The assets given under operating lease are shown in the Balance Sheet under fixed assets and depreciated on a basis
consistent with the depreciation policy of the Company. The lease income is recognized in the Profit and Loss Account
on a straight-line basis over the lease period.
Earnings per share
Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year. The weighted average number of equity shares
outstanding during the period are adjusted for events of bonus issue and share split. For the purpose of calculating
diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted
average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
The dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been
issued at a later date.
83
Schedule - 23
Notes to the Financial Statements
1. Background

Ranbaxy Laboratories Limited (the Company) together with its subsidiaries and associates, operates as an
integrated international pharmaceutical organisation with businesses encompassing the entire value chain in the
marketing, production and distribution of pharmaceutical products.
The Companys shares are listed for trading on the National Stock Exchange and the Bombay Stock Exchange in
India. Its Global Depository Shares (representing equity shares of the Company) are listed on the Luxembourg Stock
Exchange and Foreign Currency Convertible Bonds ( FCCBs) are listed on the Singapore Stock Exchange.
2.
Food and Drug Administration (FDA) and Department of Justice (DOJ) of United States of
America (USA)
On 16 September 2008, the Company received two warning letters and an Import Alert from the USA FDA,
covering 30 generic drugs being manufactured at its Paonta Sahib and Dewas manufacturing facilities in India.
The issue raised in the warning letters relate to Current Good Manufacturing Practice being followed at the
said plants and does not in any way raises questions on products quality, safety or effectiveness.
On 25 February 2009, the Company received a letter from the USA FDA indicating that the Agency had invoked
its Application Integrity Policy (AIP) against the Paonta Sahib facility (the facility). The management of the
Company believes that there was no falsification of data generated at the facility and also believes that there is
no indication of a pattern and practice of submitting untrue statements of material facts and there was no other
improper conduct. Accordingly, the Company, based on opinion from its legal council, believes that there is no
incremental present obligation existing at the balance sheet date on account of these notices.
In the year 2008, the DOJ, USA had filed certain charges against the Company citing possible issues with the
data submitted by the Company, in support of product filing. The Company continues to work diligently with the
concerned authorities towards resolution of the issue.
While the Company continues to fully cooperate with the concerned authorities for effective resolution of these
matters, due to inherent uncertainty of the related situation, the outcome of the above mentioned matters, including
any financial impact, cannot be reliably ascertained at this stage. Accordingly, no adjustment has been made to
the financial statements.
3.
On 20 October 2008, the Company had issued 23,834,333 equity share warrants to Daiichi Sankyo Co., Ltd.,
Japan (Daiichi Sankyo). Each equity share warrant was convertible into one equity share of Rs. 5 each at a premium
of Rs. 732 per share at any time between six months to eighteen months from the date of allotment of warrants
(Rs. 73.70 per warrant being 10% of the exercise price received).
On 20 April 2010, Daiichi Sankyo opted not to convert the warrants into equity shares. Hence, as per the terms
of the issue, the said warrants stand lapsed and the amount of Rs. 73.70 per warrant aggregating to Rs.1,756.59
paid by Daiichi Sankyo has been forfeited and taken to the Capital Reserve Account.
4.
On 1 July 2010, the Company transferred certain assets pertaining to its New Drug Discovery Research Centre
(including fixed assets, intangibles, in-process developments) to Daiichi Sankyo India Pharma Private Limited
alongwith a non-compete and non-solicitation agreement for a period of two years commencing from the date
of the agreement, for an aggregate consideration of Rs. 1,449.85 millions. Pursuant to this transaction, Rs. 210
million has been recognised as other operating income for non-compete fee and Rs. 131.81 as other income
included in profit on sale of assets.
5.
Impairment of long-term investments
During the year, the Company against a total value of Rs. 6,797.55 has created a combined provision of Rs. 4,078
in the value of long term investments held in Zenotech Laboratories Limited, Shimal Research Laboratories Limited
and Ranbaxy Pharmacie Generiques SAS, France (a wholly owned subsidiary of the Company) as this diminution
84
Schedule - 23
is considered to be other than temporary. The evaluation of provision involves usage of assumptions and significant
judgement based on valuation methodologies/judgements. However, keeping the attendant circumstances in view,
the management believes it is prudent to impair these investments. These will be evaluated on a going forward
basis for any further changes.
6.
Share-based compensation
The Companys Employee Stock Option Schemes (ESOSs) provide for the grant of stock options to eligible
management employees and Directors of the Company and its subsidiaries. The ESOSs are administered by the
Compensation Committee (Committee) of the Board of Directors of the Company. Options are granted at
the discretion of the committee to selected employees depending upon certain criterion. Presently, there are three
ESOSs, namely, ESOS I, ESOS II and ESOS 2005.
The ESOSs limits the maximum grant of options to an employee at 25,000 for ESOS I and 40,000 for ESOS
II and 3,00,000 for ESOS 2005 in any given year. ESOS I and II provide that the grant price of options is to be
determined at the average of the daily closing price of the Companys equity shares on the NSE during a period
of 26 weeks preceding the date of the grant. ESOS 2005 provides that the grant price of options will be the latest
available closing price on the stock exchange on which the shares of the Company are listed, prior to the date of
the meeting of the Committee in which the options are granted. If the shares are listed on more than one stock
exchange, then the stock exchange where there is highest trading volume on the said date shall be considered.
The options vests evenly over a period of five years from the date of grant. Options lapse if they are not exercised
prior to the expiry date, which is ten years from the date of the grant.
The Shareholders Committee have approved issuance of options under the Employees Stock Options Scheme(s)
as per details given below:
Date of approval
No. of options
29 June 2002
2,500,000
25 June 2003
4,000,000
30 June 2005
4,000,000
In accordance with the above approval of issuance of options, ESOPs have been granted from time to time.
The stock options outstanding as on 30 June 2005 are proportionately adjusted in view of the sub-division of
equity shares of the Company from the face value of Rs.10 each into 2 equity shares of Rs. 5 each.
Options granted upto 3 October 2002 are entitled for additional bonus shares in the ratio of 3:5.
The movement of the options (post split and without adjustment for bonus shares) for the year
ended 31 December 2010 is given below:
Stock
Range of
options exercise prices
(numbers)
(Rs.)
Outstanding, beginning of the year
7,413,016
216.00-561.00
Granted during the year
1,573,669
450.00-450.00
Forfeited during the year
(570,000)
216.00-538.50
Excercised during the year**
(589,939)
216.00-538.50
Lapsed during the year
(425,603)
216.00-538.50
Outstanding, end of the year*
7,401,143
216.00-561.00
Exercisable at the end of the year*
4,136,194
216.00-561.00
** excluding 33,396 shares issued towards bonus entitlement.
85
WeightedWeightedaverage
average
remaining
exercise prices contractual life
(Rs.)
(years)
401.68
6.30
450.00
9.15
358.65
344.44
478.32
415.42
5.99
450.20
4.39
Schedule - 23

The movement of the options ((post split and without adjustment for bonus shares) for the year
Stock
options
(numbers)
Range of
average
remaining
exercise prices exercise prices contractual life
(Rs.)
(Rs.)
(years)
7,272,849
219.00-561.00
439.59
6.73
1,472,725
216.00-216.00
216.00
9.05
(530,760)
216.00-538.50
310.84
(36,825)
216.00-372.50
312.03
Exercised during the year**

(764,973)
283.50-538.50
471.97
7,413,016
216.00-561.00
401.68
6.30
3,906,091
216.00-561.00
455.98
4.88
*Includes options exercised, pending allotment.

7.
During the current year, exchange gain (net) on loans and net foreign exchange gain (other than on loans) is shown
as part of other income due to exchange gain in both years presented. Further, inventory of Active Pharmaceuticals
Ingredients (API) manufactured and lying at plants for captive consumption has been included under Work in
Progress. Accordingly, the related previous year figures have been reclassified.
8. Capital work-in progress includes:

As at 31 December
[i] Capital advance to vendors
2010
2009
64.74
164.44
277.68
356.86
104.64
39.35
[ii] Project related expenses (directly allocable)

Particulars
Opening balance
Contributions to provident and other funds
10.90
4.97
2.49
1.18
Raw materials
5.18
4.54
Power and fuel
15.92
3.67
0.14
0.14
Insurance
Others
45.79
15.76
462.74
426.47
Less: Capitalised during the year
138.43
148.79
Balance as at the year end
324.31
277.68
2,912.77
3,707.04
3,301.82
4,149.16
[iii] Other assets

Total of [i], [ii] and [iii]
86
Schedule - 23
9.
Payment to auditors (exclusive of service tax)

For the year ended
31 December
2010
2009
13.00
9.50
2.88
3.25
a] Statutory auditors
Statutory audit fee
17.40
#
4.50 ^
Other matters
8.40
6.02 @
Out of pocket expenses
1.12
1.07
42.80
24.34
Audit fee
0.94
0.66
Certification
0.80
0.29
Out of pocket expenses
0.06
0.08
1.80
1.03
Tax audit fee

Limited review fee **
# Paid to previous statutory auditors

^ Includes Rs. 0.50 paid to previous statutory auditors
@ Includes Rs. 2.22 paid to previous statutory auditors
$ Includes Rs. 0.37 paid to previous statutory auditors
** Fee for the current year also includes fee for limited reviews of
consolidated financial statements.
b] Cost auditors
10. Leases

(a) The Company has taken on lease certain facilities under cancellable and non-cancellable operating leases
arrangements with lease term ranging from 3 to 17 years, which are subject to renewal at mutual consent
thereafter. The cancellable arrangements can be terminated by either party after giving due notice. The
lease rent expense recognised during the year amounts to Rs. 531.83 (previous year Rs. 482.99). The future
minimum lease payments in respect of non-cancellable operating leases as at 31 December 2010 and
31 December 2009 are:
As at 31 December
2010
2009
i) not later than one year
166.55
135.05
ii) later than one year but not later than five years
340.15
311.32
64.36
107.37
571.06
553.74
ii) later than five years

Total

(b)
The Company has given a part of its premises Research and Development-III under cancellable operating
lease arrangement to a related party. Lease rentals amounting to Rs. 63 (previous year Rs. Nil) has been
recognised in the Profit and Loss Account. As only a portion of these premises has been let out, the gross
carrying amount and the accumulated depreciation of leased premises/ assets is not separately identifiable.
87
Schedule - 23
11. Employee benefits

The Company primarily provides the following retirement benefits to its employees:
(a) Pension
(b) Gratuity

(c) Compensated absences

During the year, the Company has recognised an expense of Rs. 271.75 (previous year Rs. 257.09) pertaining
to employers contribution to provident fund schemes and superannuation fund which is included in personnel
cost in schedule 18.

The following tables sets out the disclosures relating to pension and gratuity benefits as required
by Accounting Standard - 15 Employee Benefits:
Change in the present value of obligation:
Present value of obligation as at 1 January 2010
Add: Interest cost
Add: Current service cost
Less: Benefits paid
Add: Actuarial loss on obligations
Present value of obligation as at 31 December 2010
Change in the Fair value of Plan Assets :
Pension
(Unfunded)
Gratuity
(Funded)
1,756.50
1,571.19
125.55
117.84
134.94
93.20
69.58
54.56
45.54
28.83
1,992.95
1,756.50
525.07
482.17
36.03
40.03
48.64
36.40
58.64
130.15
183.09
96.62
734.19
525.07
Gratuity
(Funded)
Fair value of plan assets as of 1 January 2010
439.29
439.19
46.44
35.89
238.77
94.36
58.64
130.15
665.86
439.29
Add: Actual return on plan assets

Add: Contributions
Less: Benefits paid
Fair value of plan assets as of 31 December 2010
Reconciliation of present value of defined benefit obligation and the
fair value of assets
Present value of funded obligation as of 31 December 2010
Less: Fair value of plan assets as at the end of the year
Present value of unfunded obligation as of 31 December 2010
Unfunded net liability recognised in Balance Sheet
88
Gratuity
(Funded)
734.19
525.07
665.86
439.29
68.33
85.78
68.33
85.78
Schedule - 23
Expenses recognised in the Profit and Loss Account
Current service cost
Add: Interest cost
Pension
(Unfunded)
Gratuity
(Funded)
134.94
93.20
125.55
117.84
48.64
36.40
36.03
40.03
43.48
38.57
2.78
2.11
163.82*
99.30
202.23
135.05
Less: Expected return on plan assets
15.69
2.51
45.54
28.83
290.34
237.36
Less: Settlement credit

Add: Net actuarial loss recognised
Total expenses recognised in the Profit & Loss account
* includes impact of change in actuary.

Figures in italics are for the year ended 31 December 2009
The major categories of plan assets as a percentage of total plan assets are as under:
Particulars
Gratuity
Central Government securities
9%
18%
State Government securities
4%
11%
Bonds and securities of public sector / Financial Institutions
87%
60%
Deposit with Reserve Bank of India
0%
11%

The following table sets out the assumptions used in actuarial valuation of compensated absences,
pension and gratuity:
Particulars
Compensated
Pension
absences (Unfunded)
Discount rate
Rate of increase in compensation levels #
Rate of return of plan assets
Expected average remaining working lives of employees (years)

(Unfunded)
7.90%
7.50%
7-10%
5-10%
N.A.
N.A.
20.04 - 24.73
20.55 - 24.08
Gratuity
(Funded)
7.90%
7.90%
7.50%
7.50%
7-10%
7-10%
5-10%
5-10%
N.A.
9%
N.A.
8%
20.00 20.09 - 24.72
20.58 20.58 - 24.08
The liability for compensated absences as at 31 December 2010 was Rs. 355.24 (previous year Rs. 266.03).
# 10% for the first three years and 7% thereafter (previous year 10% for the first three years and 5%
thereafter).
89
Schedule - 23
12. Hedging and Derivatives

a) The Company uses various forms of derivative instruments such as foreign exchange forward contracts,
options, cross currency swaps and interest rate swaps to hedge its exposure to movements in foreign exchange
and interest rates. These derivatives are not used for trading or speculation purposes.

b) Some of these derivatives are used as hedging instruments to hedge foreign exchange fluctuation risk on highly
probable transactions arising during the period upto the date of sales transaction. These sales transactions
are expected to occur over a period of January 2011 to July 2013 years which also approximates/ coincides
with maturity of hedging instruments. The ineffectiveness arising from cash flow hedges recognized in
Profit and Loss Account is not material.

The following are the outstanding derivative contracts entered into by the Company:
Category

c)
Currency
Cross
Amount
Currency (in millions)
INR
USD 249.00
USD
EUR 5 .00
USD
ZAR 40.75
INR
USD 846.50
USD JPY 8,150.00
JPY 7,400.00
Rs. (9,996.32)
Buy/
Sell
Sell
Sell
Sell
Sell
Buy
Purpose
Forward contracts*
USD
Hedging
Forward contracts
EUR
Hedging
Forward contracts
ZAR
Hedging
Currency options
USD
Hedging
Currency swaps
JPY
Hedging
Interest rate swap (JPY LIBOR)
JPY
Hedging
Cummulative mark to market loss on
above instruments, net #
Forward contracts*
USD
INR
USD 20.00
Sell
Hedging
Forward contracts
EUR
USD
USD 1.44
Sell
Hedging
Currency options
USD
INR USD 1,038.50
Sell
Hedging
Currency swaps
JPY
USD JPY 10,350.00
Buy
Hedging
JPY
JPY 11,800.00
Hedging
Cummulative mark to market loss on
Rs. (16,062.18)
above instruments, net #
# determined based on valuation provided by banks i.e. counter party or observable market input including
currency forward and spot rates, yield curves, currency, volatility etc.
* Designated as cash flow hedge instruments.
The Companys unhedged foreign currency exposures on account of payables/ receivables not hedged are
as follows:
As at 31 December 2010 As at 31 December 2009
(in original (in Rupees) (in original (in Rupees)
currency)
currency)
Receivables (net of advances) *
EURO
17.16
1,026.55
22.05
1,469.99
BRL
8.71
234.00
24.98
666.21
ZAR
43.24
291.00
102.30
640.96
RUB
980.81
1,434.34
410.90
267.24
GBP
2.56
178.00
2.73
205.53
AUD
5.52
252.00
2.04
85.18
SEK
1.81
12.00
10.62
68.99
NZD
0.08
3.00
1.10
37.18
90
Schedule - 23
currency)
currency)
MYR
1.04
15.00
2.73
37.05
CNY
2.99
20.40
JPY
41.78
23.00
36.22
18.31
AED
0.65
8.28
THB
36.80
55.00
MXN
8.36
30.00
RMB
0.56
4.00
NGN
8.86
3.00
MMK
0.11
1.39
CHF
0.01
0.37
* USD - INR currency exposure for receivable balances is hedged fully, however USD to above currency
is unhedged to the extent stated above.
Payables (net of advances)
USD
71.94
3,216.40
51.73
2,406.05
EURO
6.60
394.59
4.27
284.68
CAD
0.92
41.02
2.61
115.30
GBP
0.39
27.26
0.44
33.08
JPY
41.77
23.01
24.22
12.24
RUB
61.69
90.22
12.38
1.50
UAH
1.65
9.23
0.07
0.05
AED
0.52
6.31
0.05
0.06
KZT
15.94
4.84
0.13
0.69
Others#
11.38
3.06
Bank balances
USD
80.27
3,588.29
0.62
28.84
LTL
0.30
5.23
0.56
10.81
CFR
88.78
7.87
94.04
9.55
RUB
4.80
7.02
5.90
3.83
PLN
0.03
0.45
0.03
0.49
UAH
0.20
1.13
0.53
3.04
RMB
0.33
2.21
AED
0.20
2.43
0.23
2.95
KZT
13.85
4.20
0.05
0.01
KES
8.42
4.65
0.93
0.57
Others#
0.26
2.39
Loans
USD
957.93 42,828.98
666.86
31,016.74
# Exposures in other currencies which are not significant has been aggregated for this disclosure.
For derivatives refer to note 10(a) above.
91
Schedule - 23
13. a)
Other income includes net foreign exchange gain (other than on loans)
For the year ended
31 December
Foreign exchange loss (net)
Fair valuation gain on derivatives (net)
2010
2009
209.32
1,423.48
(4,368.82)
(3,213.88)
(4,159.50)
(1,790.40)
b] Interest expense
Interest expense includes interest paid on fixed period loans amounting to Rs. 172.96 (previous year Rs. 148.04).
14. a)
Directors remuneration *
For the year ended
31 December
Salaries and allowances
Contribution to provident and other funds*
2010
2009
43.96
186.44
1.84
20.67
Directors' fee
1.04
1.99
Commission
71.00
52.00
0.53
4.84
118.37
265.94
Perquisites

* Does not include the following:

i)
Liabilities in respect of gratuity, pension and leave encashment (for one of the directors) as the same
is determined on an actuarial basis for the company as a whole.

ii) Compensation cost of Rs. nil for the loss of office to a director (previous year Rs. 481.38).

Mr. Arun Sawhney was appointed as the Managing Director of the Company with effect from 20 August
2010 for a period of three years. The appointment and remuneration of Mr. Arun Sawhney as the Managing
Director has been approved by the Board of Directors, but the requisite regulatory approval from shareholders
is yet to be obtained. In accordance with the remuneration determined by the Board of Directors, Rs. 32.91
(including commission) has been accounted for as an expense in the Profit and Loss Accounts for the year
ended 31 December 2010.

b) Determination of net profits in accordance with the provisions of section 349 of the
Companies Act, 1956 and commission payable to directors:
For the year ended
31 December
Profit before tax as per Profit and Loss Account
2010
2009
15,652.45
10,619.17
260.59
237.34
2,255.03
420.33
13,136.83
9,961.50
118.37
265.94
Less:
Profit on sale of investments
Add:
Directors' remuneration (including commission)
92
Schedule - 23
For the year ended
31 December
Provision for diminution in value of long term investments
2010
2009
86.04
12.00
4,078.00
17,419.24
10,239.44
1741.92
1023.94
174.19
102.39
Whole-time
21.00
35.00
Others
50.00
17.00
71.00
52.00
Net profit
Maximum remuneration which can be paid to Whole-time Directors as
per Companies Act, 1956
Maximum commission which can be paid to other Directors as per
Companies Act, 1956
Commission to directors :
(As determined by the Board of Directors)
15. Commitments, contingent liabilities and provisions

As at 31 December
2010
2009
(a) DPCO *
1,952.90
1,703.30
(b) Letter of comfort on behalf of subsidiaries, to the extent of limits
2,450.84
4,656.88
(c) Octroi tax matters **
171.00
171.00
(d) Other matters ***
187.30
190.71
i) Claims against the Company not acknowledged as debts, under dispute:
The Company has received demands for payment to the credit of the Drug Prices Equalisation Account
under Drugs (Price Control) Order, 1995 (DPCO) which is being contested by the Company in respect
of its various products. Further, the Company has deposited Rs. 325.59 (previous year Rs. 319.59) under
protest.
** The Company has been contesting a case with the Municipal Corporation of Mohali (MCM) under which
MCM is contesting that Octroi has to be paid by the Company at 1% as against 0.5% being paid by the
Company. The amount above represents the difference payable.
*** These represent cases pending at various forums on account of employee / worker related cases, State
electricity board, Punjab Land Preservation Act, etc.
ii) In respect of matters in (b) to (d) above, the amount represents the demands received under the respective
demand/ show cause notices/ legal claims, wherever applicable.
iii) The Company, directly or indirectly through its subsidiaries, severally or jointly is also involved in certain
patents and product liability disputes as at the year end. Due to the nature of these disputes and also in
view of significant uncertainty of outcome, the Company believes that the amount of exposure cannot be
currently determinable.
v) Estimated amount of contracts remaining to be executed on capital

account and not provided for (net of advances)
775.67 773.85
93
Schedule - 23
16. The aggregate amount of revenue expenditure incurred on research and development is shown
in the respective heads of account. The break-up of the amount is as under:
For the year ended
31 December
2010
2009
1,531.59
1,309.08
92.82
81.57
54.15
68.37
854.11
1,135.09
425.52
531.99
314.96
272.27
510.02
451.55
211.50
213.09
19.32
16.61
37.38
38.06
73.51
56.37
16.27
53.95
81.47
85.50
30.64
34.34
67.64
49.32
36.71
6.44
10.82
44.34
104.02
94.54
12.81
13.43
295.44
165.93
4,780.70
4,721.84

Contribution to provident and other funds
Raw materials consumed
Power and fuel
Clinical trials
Rent
Insurance
Communication
Legal and professional charges
Analytical and processing charges
- Buildings
- Plant and machinery
- Others
Others
17. Related party disclosures

a] Relationship :

i) Holding company (also being the ultimate holding company)

1
Daiichi Sankyo Co. Ltd., Japan
ii] Fellow subsidiary with whom transactions have taken place during the year or previous
year

1
Daiichi Sankyo India Pharma Private Limited, India (DSIN)
iii) Subsidiaries including step down subsidiaries / partnership firms (domestic):

1
2
3
Ranbaxy SEZ Limited
4
5

6
7
8

9
Solrex Pharmaceuticals Company (a Partnership firm)
94
Schedule - 23
iv) Subsidiaries including step down subsidiaries (overseas):

1
Ranbaxy (Netherlands) BV, The Netherlands

2
Ranbaxy (Hong Kong) Limited, Hong Kong
3
Ranbaxy Inc., USA

4
Ranbaxy Egypt (L.L.C.), Egypt

5
Ranbaxy (Guangzhou China) Ltd., China (upto 29 December 2009)

6
Ranbaxy Farmaceutica Ltda, Brazil

7
Ranbaxy Signature, LLC. USA
8
Ranbaxy PRP(Peru) SAC

9
Ranbaxy Australia Pty Ltd., Australia

10 Lapharma GmbH, Germany (upto 16 December 2010)

11 Ranbaxy Unichem Co. Ltd., Thailand

12 Ranbaxy USA, Inc., USA

13 Ranbaxy Italia S.p.A, Italy

14 Ranbaxy (Malaysia) Sdn. Bhd., Malaysia

15 Be-Tabs Investments (Proprietary) Ltd., South Africa

16 Ranbaxy Japan KK (from 9 November 2009 to 16 September 2010)

17 Ranbaxy NANV, The Netherlands (upto 17 November 2010)

18 Ranbaxy (Poland) S. P. Zoo, Poland

19 Ranbaxy (Nigeria) Limited, Nigeria

20 Ranbaxy Europe Limited, U.K.

21 Ranbaxy (UK) Limited, U.K.

22 Basics GmbH , Germany.
23
ZAO Ranbaxy, Russia
24
Terapia S.A., Romania

25 Ranbaxy Pharmaceuticals, Inc., USA

26 Ranbaxy Laboratories Inc., USA

27 Ohm Laboratories, Inc., USA

28 Ranbaxy Hungary Kft, Hungary (upto 22 May 2009)

29 Terapia Distributie S.R.L., Romania

30 Ranbaxy Pharma AB, Sweden

31 Office Pharmaceutique Industriel et Hospitalier SARL, France

32 Ranbaxy Ireland Limited, Ireland

33 Ranbaxy (S.A.) Proprietary Limited, South Africa

34 Ranbaxy Holdings (UK) Ltd., U.K.

35 Ranbaxy Do Brazil Ltda, Brazil

36 Laboratorios Ranbaxy, S.L., Spain

37 Ranbaxy Vietnam Company Limited, Vietnam (upto 05 October 2009)

38 Ranbaxy Pharmacie Generiques SAS, France

39 Ranbaxy Pharmaceuticals Canada Inc., Canada

40 Sonke Pharmaceuticals (Pty) Ltd., South Africa

41 Ranbaxy Mexico S.A.de C.V., Mexico (from 13 November 2009)

42 Ranbaxy Mexico Servicios S.A.de C.V., Mexico

43 Ranbaxy Portugal - Com E Desenvolv De Prod Farmaceuticos Unipessoal Lda, Portugal

44 Ranbaxy Beligium N.V., Belgium

45 Be-Tabs Pharmaceuticals (Proprietary) Ltd.

46 Rexcel Egypt (L.L.C.), Egypt
v) Joint Venture (Overseas)

1 Nihon Pharmaceuticals Industry Co. Ltd., Japan (Investment made by Ranbaxy (Netherlands)
BV, The Netherlands) (upto 8 December 2009)
95
Schedule - 23
vi) Associates (domestic)
1

2

vii) Key management personnel

1
Mr. Malvinder Mohan Singh, Chairman, CEO & Managing Director (upto 24 May 2009)

2
Mr. Atul Sobti, CEO & Managing Director (upto 19 August 2010)

3
Mr. Arun Sawhney, Managing Director (from 20 August 2010)
viii) Relatives of Key management personnel with whom transactions were carried out
during the previous year

1
Mrs. Nimmi Singh, mother of Mr. Malvinder Mohan Singh (upto 24 May 2009)

ix) Entities over which significant influence was exercised by Mr. Malvinder Mohan
Singh and with whom transactions were carried out during the previous year (upto 24
May 2009)

1
Fortis Healthcare Limited (including its subsidiaries)
2
Religare Securities Limited

3
Ran Air Services Limited

4
Religare Travels (India) Limited

5
Religare Capital Markets Limited

6
Super Religare Laboratories Limited

7
Fortis Clinical Research Limited
8
Religare Enterprises Limited

9
Escorts Heart Institute and Research Centre Limited

10 Religare Technova IT Services Limited (formerly Fortis Financial Services Limited)
11
Oscar Investments Limited

b] Transactions with the related parties
Transactions
Sales
Royalty, technical know-how and
product development (income)
Non-compete fee (income
recognised)
Non-compete fee (deferred income)
Dividend from overseas subsidiaries
Sale of fixed assets
Unclaimed balances/ excess
provision written back
Interest received
Holding
company
Fellow
subsidiary
19.39
207.25
SubsiKey
Entities
diaries,
manage- over which
Joint
ment
significant
Venture personnel influence is
and
exercised
Associates
22,194.25
(17,199.19)
153.14
Total
22,213.64
(17,199.19)
360.39
210.00
(195.06)
(195.06)
210.00
630.00
589.38
13.06
(9.54)
142.72
(204.94)
30.57
630.00
13.06
(9.54)
732.10
(204.94)
30.57
(928.42)
0.16
(0.36)
(928.42)
0.16
(0.36)
96
Schedule - 23
Transactions
Rental income
Holding
company
Fellow
subsidiary
6.86
0.02
(0.23)
(1.46)
63.00
8.10
42.09
Clinical trials
Product quality claim
Business support expenses

4.15

5.46
(2.20)
Royalty expense
1.09
(0.36)
Commission
Personnel expenses
Technical services availed

18.76
Investments made
Loans and advances given
Loans and advances received back
Security deposit received
Note: Figures in brackets are for previous year
Operating income - others

Other income - miscellaneous
Market research expenses
Procurement cost of exhibit
batches
Regulatory filing expenses
(including other fees)
Analytical and processing charges
SubsiKey
Entities
diaries,
manage- over which
Joint
ment
significant
Venture personnel influence is
and
exercised
Associates
Total
(1.04)
(2.40)
1,106.33
(1,199.32)
564.48
(656.86)
219.35
(13.73)
63.00
(1.04)
14.96
42.09
(16.13)
1,106.35
(1,199.55)
564.48
(658.32)
219.35
(412.35)
310.44
(412.35)
310.44
63.00
(193.24)
143.24
(153.58)
105.11
(61.02)
13.41
(57.14)
0.81
(1.30)
0.80
1.14
(1.18)
(0.68)
(0.35)
20.65
(2,404.49)
6.80
(5.50)
1,500.98
(330.05)
11.65
67.33
(250.64)
(98.03)
(97.57)
(193.24)
143.24
(153.58)
105.11
(61.02)
13.41
(57.14)
4.96
(1.30)
6.26
(2.20)
2.23
(1.54)
(0.68)
(0.35)
67.33
(250.64)
39.41
(98.03)
(2,404.49)
6.80
(5.50)
1,500.98
(330.05)
11.65
(97.57)
63.00
97
Schedule - 23

c]
Transaction in excess of 10% of the total related party transactions
Sr. Transactions
No.
Related party
relationship
1 Sales
Ohm Laboratories, Inc, USA
ZAO Ranbaxy, Russia
2 Royalty, Technical know-how and product
development (income)
Daiichi Sankyo Co. Ltd.
Ranbaxy Pharmaceuticals, Inc. USA
Ranbaxy (Guangzhou China) Limited, China
Ranbaxy Unichem Company Ltd., Thailand
3 Non-compete fee (Income recognised)
Daiichi Sankyo India Pharma Private Ltd.
4 Non-compete fee (Deferred income)
5 Dividend from overseas subsidiaries
Ranbaxy Nigeria Limited, Nigeria
6 Sale of fixed assets
Basics GmbH , Germany.
ZAO Ranbaxy, Russia
7 Unclaimed balances/ excess provision
written back
Ranbaxy Pharmaceuticals, Inc. USA
8 Interest received
Ranbaxy Drugs and Chemicals Company, India
9 Rent Received
Solrex Pharmaceuticals Company, India
(A Partnership firm)
10 Operating income - others
Daiichi Sankyo Co. Ltd.
Zenotech Laboratories Limited, India
11 Other income - miscellaneous
98
For the
For the
year ended
year ended
2010
2009
Subsidiary company
Subsidiary company
12,632.65
2,578.14
8,557.05
1,318.95
Holding company
Subsidiary company
Subsidiary company
Subsidiary company
Subsidiary company
Subsidiary company
207.25
80.18
53.94
50.68
65.86
45.76
18.46
Fellow subsidiary
210.00
Fellow subsidiary
630.00
Subsidiary company
Subsidiary company
Subsidiary company
9.28
2.15
1.63
5.22
2.17
2.15
Subsidiary company
Fellow subsidiary
Subsidiary company
Subsidiary company
142.72
589.38
166.89
38.05
Subsidiary company
Subsidiary company
30.57
850.93
Subsidiary company
0.16
0.36
Fellow subsidiary
Subsidiary company
63.00
1.04
Holding company
Fellow subsidiary
Subsidiary company
6.86
8.09
1.71
0.69
42.09
Associates
Fellow subsidiary
Schedule - 23
Sr. Transactions
No.
Related party
relationship
12 Finished goods purchased

13 Market research expenses
Ranbaxy Inc., USA
Ranbaxy Europe Limited, U.K.
14 Procurement cost of exhibit batches
15 Regulatory filing expenses
(including other fees)
Ranbaxy (UK) Limited, U.K.
Ranbaxy Inc., USA
Basics GmbH , Germany.
Laboratorios Ranbaxy, S.L., Spain
Ranbaxy Italia S.p.A, Italy
Ranbaxy Beligium N.V., Belgium
16 Analytical and processing charges
Ranbaxy Ireland Limited, Ireland
17 Clinical trials
18 Product quality claim
Ranbaxy Farmaceutica Ltda, Brazil
Ranbaxy Ireland Limited, Ireland, India
ZAO Ranbaxy, Russia
19 Business support expenses
Daiichi Sankyo Co. Limited, Japan
Ranbaxy Inc., USA
20 Travel and conveyance
Daiichi Sankyo Co. Limited, Japan
21 Royalty paid
Daiichi Sankyo Co. Limited , Japan
22 Freight ,clearing and forwarding
Ranbaxy Ireland Limited, Ireland
23 Commission paid
99
For the
For the
year ended
year ended
2010
2009
Subsidiary company
972.29
1,003.26
Subsidiary company
144.19
Subsidiary company
Subsidiary company
Subsidiary company
269.65
217.59
77.25
339.11
268.19
Subsidiary company
217.26
412.35
Subsidiary company
Subsidiary company
Subsidiary company
Subsidiary company
Subsidiary company
Subsidiary company
Subsidiary company
127.10
43.49
35.06
32.26
45.16
30.96
22.47
24.95
19.85
Subsidiary company
Subsidiary company
Subsidiary company
73.44
37.38
96.15
23.37
34.06
Subsidiary company
105.11
61.02
Subsidiary company
Subsidiary company
Subsidiary company
Subsidiary company
6.10
3.88
2.06
1.38
34.55
5.97
13.10
Holding company
Subsidiary company
4.15
1.30
Holding company
5.46
2.20
Holding company
Subsidiary company
Subsidiary company
1.09
0.90
0.24
0.36
0.94
0.24
Subsidiary company
0.68
Subsidiary company
0.35
Schedule - 23
Sr. Transactions
No.
Related party
relationship
For the
For the
year ended
year ended
2010
2009
24 Personnel Cost (Also refer to note 12)

Mr. Malvinder Mohan Singh (Upto 24th May 2009) Key management
personnel
Mr. Atul Sobti (Upto 19th August 2010)
Key management
personnel
Mr. Arun Sawhney (From 20th August 2010)
Key management
personnel
25 Technical services availed
Daiichi Sankyo Co. Limited , Japan
Holding company
Subsidiary company
Fortis Clinical Research Limited, India
Entities over which
significant influence
is exercised
Religare Technova IT Services Limited, India
Entities over which
is exercised
26 Investments made
Ranbaxy (Netherlands) BV, The Netherlands
Subsidiary company
27 Loans and advances given
Subsidiary company
Subsidiary company
28 Loan and advances received back
Rexcel Pharmaceuticals Ltd, India
Subsidiary company
Solus Pharmaceuticals Ltd, India
Subsidiary company
29 Purchase of fixed assets
ZAO Ranbaxy, Russia
Subsidiary company
Religare Technova IT Services Limited, India
Entities over which
is exercised
30 Security deposit received
Daiichi Sankyo India Pharma Private Limited
Fellow subsidiary

167.41
34.42
79.54
32.91
18.76
14.83
48.54
33.38
2,404.50
6.50
5.50
728.98
761.70
164.99
165.00
11.65
97.57
63.00
d] Balances due from/to the related parties

Sr. Transactions
No.
1
(i)
Debtors
Ranbaxy (Hong Kong) Limited,
Hong Kong
(ii) Ranbaxy (Malaysia) Sdn. Bhd.,
Malaysia
(iii) Ranbaxy (UK) Limited, U.K.
Holding
company
and Fellow
subsidiary
100
Subsidiaries*
(101.34)
35.97
(122.98)
32.25
(114.13)
Joint
venture and
associates
Key
management
personnel
Total
(101.34)
35.97
(122.98)
32.25
(114.13)
Schedule - 23
Sr. Transactions
No.
(iv) ZAO Ranbaxy, Russia

(v) Ranbaxy Nigeria Limited,
Nigeria
(vi) Ranbaxy Ireland Limited,
Ireland
(vii) Ranbaxy PRP(Peru) SAC
(viii) Ranbaxy (S.A.) Proprietary Ltd.,
South Africa
(ix) Be-Tabs Investments
(Proprietary) Ltd., South Africa
(x) Ranbaxy Egypt (L.L.C.), Egypt
(xi) Ranbaxy Farmaceutica Ltda,
Brazil
(xii) Ranbaxy Australia Pty Ltd.,
Australia
(xiii) Ranbaxy Italia S.p.A, Italy
(xiv) Ranbaxy Portugal - Com E
Desenvolv De Prod
Farmaceuticos Unipessoal Lda,
Portugal
(xv) Ranbaxy Pharmacie Generiques
SAS, France
(xvi) Ranbaxy Pharma AB, Sweden
(xvii) Ranbaxy Beligium N.V.,
Belgium
(xviii) Ohm Laboratories, Inc, USA
(xix) Basics GmbH , Germany.
(xx) Laboratorios Ranbaxy, S.L.,
Spain
(xxi) Ranbaxy Unichem Co. Ltd.,
Thailand
(xxii) Terapia S.A., Romania
(xxiii) Ranbaxy Pharmaceuticals, Inc.
USA
(xxiv) Daiichi Sankyo Co., Ltd. , Japan
Holding
company
and Fellow
subsidiary
Subsidiaries*
Joint
venture and
associates
Key
management
personnel
Total
1,433.59
(629.11)
64.34
(58.75)
120.88
(329.36)
168.39
(150.19)
565.43
(602.92)
(38.15)
9.49
(0.84)
425.00
(686.74)
178.92
(140.13)
111.58
(182.21)
7.68
(5.89)
1,433.59
(629.11)
64.34
(58.75)
120.88
(329.36)
168.39
(150.19)
565.43
(602.92)
(38.15)
9.49
(0.84)
425.00
(686.74)
178.92
(140.13)
111.58
(182.21)
7.68
(5.89)
8.13
116.51
(53.49)
12.07
(80.16)
33.17
(46.97)
4,631.73
(7,104.67)
63.80
15.17
65.92
220.43
67.28
116.51
(53.49)
12.07
(80.16)
33.17
(46.97)
4,631.73
(7,104.67)
63.80
15.17
65.92
220.43
67.28
8.13
101
Schedule - 23
Sr. Transactions
No.
(xxiv) Daiichi Sankyo India Pharma

Private Limited $
(xxv) Zenotech Laboratories Limited
2
Creditors
Loans and advances to

subsidiaries (Refer to note 21
of Schedule 23)
Payable to whole-time
director (commission)
Holding
company
and Fellow
subsidiary
Subsidiaries*
Joint
venture and
associates
Key
management
personnel
Total
11.34
11.37
(0.96)
1,769.56
(371.62)
39.60
(1,533.78)
0.17
8.58
(4.11)
11.34
0.17
1,789.51
(376.69)
39.60
(1,533.78)
21.00
(35.00)
21.00
(35.00)
Note: figures in brackets are for previous year

* Dues from parties under the same management as defined under Section 370 (1-B) of the Companies Act,
1956.
$ Represents fellow subsidiary and also a party under the same management as defined under Section 370 (1-B)
of the Companies Act, 1956.
18. Segment information

In accordance with AS-17 Segment Reporting, segment information has been given in the consolidated financial
statements of Ranbaxy Laboratories Limited, and therefore, no separate disclosure on segment information is
given in these financial statements.
19. Disclosures as required under the Micro, Small and Medium Enterprises Development Act, 2006 based on the
information available with the Company are given below:
As at 31 December
2010
2009
The principal amount remaining unpaid to any supplier as at the end of

the year
22.36
21.69
The interest due on the principal remaining outstanding as at the end of

the year
The amount of interest paid under the Act, along with the amounts of the
payment made beyond the appointed day during the year
The amount of interest due and payable for the period of delay in making
payment (which have been paid but beyond the appointed day during the
year) but without adding the interest specified under the Act
The amount of interest accrued and remaining unpaid at the end of the
year
The amount of further interest remaining due and payable even in the
succeeding years, until such date when the interest dues as above are actually
paid to the small enterprise, for the purpose of disallowance as a deductible
expenditure under the Act
102
Schedule - 23
20. Additional information pursuant to paragraphs 3 & 4 of part II of schedule VI to the Companies
Act,1956

(As certified by the management and accepted by the auditors)

a] Particulars of installed capacities and actual production
Unit of
measure
Installed
Actual
Installed
Actual
capacity
production
capacity production
as at
for the
as at
for the
31 December
year ended 31 December year ended
2010 31 December
2009 31 December
2010
2009
Dosage forms
Tablets
Nos. in million
9,863.60
4,878.10
9,601.60
4,056.81
Capsules
Nos. in million
3,078.00
1,593.77
2,862.00
1,218.33
Dry syrups/Powders
Bottles in million
78.00
34.32
43.80
23.79
Ampoules
Nos. in million
48.00
107.82
48.00
83.06
Vials
Nos. in million
35.00
46.61
35.00
41.81
Liquids $
Kilolitres
898.82
561.60
Drops $
Kilolitres
42.68
38.78
Active pharmaceuticals Tonnes

ingredients and drugs
intermediates
Ointments
(including sprays)
2,019.18
Tonnes
1,119.80 #
428.20
1,917.89
1,060.09 #
633.32
* In different denominations than actual production.

# Inclusive of production used for captive consumption.
$ Installed capacity is not given as the same is manufactured by loan licensees.

Notes :
1. In terms of press Note no 4 (1994 series) dated October 25, 1994 issued by the department of Industrial
Development, Ministry of Industry, Government of India and Notification no. S.O. 137 (E) dated March
01, 1999 issued by the Department of Industrial Policy and Promotion, Ministry of Industry, Government
of India, Industrial licencing has been abolished in respect of bulk drugs and formulations. Hence there are
no registered/ Licenced capacities for these bulk drugs and formulations.
2. Installed capacity being effective operational capacity has been calculated on a double shift basis for dosage
forms facilities and on a continuous basis for active pharmaceuticals ingredients and drug intermediates,
it may vary according to the production mix. In addition, installed capacities does not include the installed
capacity in relation to dosage forms manufactured at loan licencees.
3. Actual production includes production at loan licencee locations.
103
Schedule - 23

b] Particulars of Production, Purchases, Sales and Stock of finished goods

Class of Goods
Tablets
Unit of
Opening Stock
Production
Purchases
Sales
measure Quantity
Value Quantity Quantity
Value Quantity @
Nos./
Million
Capsules
Nos./
Million
786.66 1,079.98 4,878.10 2,306.38
1,664.93
836.33 1,057.82 4,056.81 2,025.19
6,831.42
Closing Stock
Value Quantity
Value
18,767.86 1,139.72 1,489.85
1,376.06
6,131.67
17,087.42
786.66 1,079.98
177.42
289.95 1,593.77
432.13
361.09
1,903.50
5,703.50
299.82
205.72
336.17 1,218.33
359.27
492.87
1,605.90
5,135.74
177.42
289.95
7.86
91.20
34.32
24.75
199.80
55.08
1,585.51
11.85
202.03
385.80
Dry syrups/
Bottles/
Powders
Million
8.27
101.93
23.79
73.62
139.40
97.82
1,462.41
7.86
91.20
Ampoules
Nos./
11.42
65.26
107.82
4.05
36.72
104.44
1,007.75
18.85
83.61
Million
21.83
67.31
83.06
3.17
24.92
96.64
971.85
11.42
65.26
Nos./
8.81
261.12
46.61
87.34
830.41
128.50
3,566.81
14.26
371.94
41.81
Vials
Million
Liquids
Kilolitres
Drops
Kilolitres
Active
Tonnes
pharmaceuticals
ingredients and
drugs intermediates
Ointments
Tonnes
(including
sprays)
8.63
250.27
53.92
530.97
95.55
2,879.71
8.81
261.12
331.57
59.80
898.82 3,217.28
471.14
3,648.65
1,097.00
799.02
161.57
594.06
110.28
561.60 2,312.30
358.54
3,136.39
959.75
331.57
59.80
4.84
3.01
42.68
4.30
0.98
44.80
77.15
7.02
5.81
8.94
7.46
38.78
8.14
11.60
51.02
78.73
4.84
3.01
269.41 2,675.48 1,119.80
303.73
2,069.99
273.93 2,499.60 1,060.09
171.54
1,177.90
789.45
14,323.39
269.41 2,675.48 *
428.20 1,253.43
675.35
1,534.19
2,028.18
319.03
201.22
463.44
1,543.03
1,676.82
171.59
108.71
171.59
108.71
219.14
119.22
Others
633.32
862.16
849.52 # 18,339.70
305.84 3,918.53 *
77.36
210.11
341.40
59.67
236.36
635.98
46.89
77.36
4,711.87
6,520.52
52,514.86
6,867.25
4,609.73
4,812.06
45,211.80
4,711.87
Notes:
@ Inclusive of physician samples.
# Excludes 537.58 (previous year 446.70) tonnes used for captive consumption.
Figures in italics are for 2009.
Sales are exclusive of excise duty and trade discount.
* Includes active pharmaceutical ingredients lying at plants for captive consumption amounting to Rs. 2,100.96 (previous year
Rs. 1,511.95).
c] Consumption of raw materials (quantity in metric tonnes)

Raw material
3 - CI - 7 - ACCA
Erythromycin A95
Cefuroxime Axetil Crystalline
7 ADCA
6APA
Others
For the year ended

31 December 2010
Quantity
Amount
86.42
976.02
125.35
399.07
34.06
294.16
110.39
263.45
109.12
147.96
11,590.46
13,671.12
104
For the year ended

31 December 2009
Quantity
Amount
92.21
1,035.69
121.60
334.02
39.81
325.74
123.94
295.69
192.10
251.40
11,450.62
13,693.16
Schedule - 23

d] Consumption of raw materials, components and spares
Indigenous
For the year ended

31 December 2010
For the year ended

31 December 2009
Raw Components,
materials
spares &
Packaging
materials *
Raw Components,
materials
spares &
Packaging
materials*
Rs. Million
6,745.41
2,582.55
4,837.37
2,218.21
As % of total
49.34%
89.05%
35.33%
86.62%
Rs. Million
6,925.71
317.62
8,855.79
342.53
As % of total
50.66%
10.95%
64.67%
13.38%
Imported
* Inclusive of components and spares used for maintenance of plant and machinery
d] Imports on C. I. F. basis:
For the year ended
31 December
Raw materials
2010
2009
6,426.47
6,076.74
Components and spares
101.29
151.53
Capital goods
166.75
312.75
6,694.51
6,541.02
236.44
314.00
1.67
3.46
745.99
1,778.17
4,318.87
4,463.76
5,302.97
6,559.39
f] Expenditure in foreign currencies

Interest
Royalty paid
Legal and professional charges
Others *
* Other includes overseas personnel expenses, advertisement and sales promotion, regulatory filling fee, commission, market
research expenses, rent, travel and conveyance, etc.
g] Earnings in foreign exchange
F.O.B. value of exports (excluding Nepal)
Royalty / Technical know-how and product development
Dividend
Others (freight, insurance, settlement income, provision written back
etc.)
105
33,603.18
27,728.90
790.14
265.90
13.06
9.54
3,460.05
3,360.17
37,866.43
31,364.51
Schedule - 23
21. Information pursuant to clause 32 of the listing agreements with stock exchanges

Loans and advances in the nature of loans to wholly-owned subsidiary companies are as
under:
Balance as at
31 December
Interest free with no specified payment

schedule:
a) Ranbaxy Drugs Limited
b) Rexel Pharmaceuticals Limited
c) Solus Pharmaceuticals Limited
d) Ranbaxy Life Sciences Research Limited
2010
2009
3.16
24.24
10.20
2.00
39.60
3.16
753.22
771.90
1,528.28
Interest bearing with no specified payment

schedule:
a) Ranbaxy Drugs & Chemicals Company
Maximum balance
during the year ended
31 December
2010
2009
3.16
753.22
771.90
6.50
1,534.78
3.16
918.20
936.90
1,858.26
5.50
5.50
5.50
5.50
5.50
5.50
39.60
1,533.78
1,540.28
1,863.76
The above parties are also companies under the same management as defined under Section 370(I-B) of the
Companies Act, 1956.
Dr. Tsutomu Une

Chairman
Arun Sawhney
Managing Director
Ranjit Kohli
Sushil K. Patawari
Company Secretary
Place : Gurgaon
106
Balance Sheet Abstract and Companys General Business Profile

I.
Registration Details :
Registration No.
0 0 3 7 4 7
Balance Sheet Date :
3 1
1 2
2 0
Date Month
State Code : 1 6
1 0
Year
II. Capital Raised during the year (Amount in Rs. Thousands)

Public Issue :
N I L
Employees Stock Options :
Bonus Issue :
3 1 1
Rights Issue :
7 Preferential Allotment :
N I L
Private Placement :
N I L
N I L
N I L
III. Position of Mobilisation and Deployment of funds (Amount in Rs. Thousands)

Total Liabilities :
2 8 1 2 0 0 8
Source of Funds
Paid-up-Capital :
1 2 8 1 2 0 0 8
4 9 1 5 2 7 5
Equity share warrant money
Share application money

pending allotment
Secured Loans :
5 Unsecured Loans :
4 0 5 6 3 3 0
Deferred tax liability :
Application of Funds
Net Fixed Assets :
2 0 4 2 2 9 9
8 Investments :
3 8 0 4 4 3 5
Net Current Assets :
3 5 4 6 3 7 0
3 Deferred Tax Asset :
Accumulated Losses :
2 1 0 5 2 0
7 Total Assets :
3 Reserves & Surplus :
N I L
6 5 9 6
1 9 5 3 8 5
N I L
N I L
Misc. Expenditure :
N I L
N I L
IV. Performance of Company (Amount in Rs. Thousands)

Turnover :
+ -
5 2 6 6 7 0 8 5 Total Expenditure :
Profit / Loss Before Tax :

1 5 6 5 2 4 4 7 Profit / Loss
After tax :
Earning Per Share in Rs.
2 3
+ -
5 1 0 8 6 3 8 8
1 1 4 8 7 2 5
5 Dividend Rate % :
V. Generic Names of Three Principal Products of the Company

Item Code No.
2 9 4 1 9 0
Product Description
C E F A C L O R
Item Code No.
2 9 4 2 0 0
Product Description
C E P H A L E X
Item Code No.
2 9 4 1 1 0
Product Description
I N
A M O X Y C I L L I N
Dr. Tsutomu Une

Chairman
Arun Sawhney
Managing Director
Ranjit Kohli
Sushil K. Patawari
Company Secretary
Place : Gurgaon
107
7
0
Statement Regarding Subsidiary Companies Pursuant to Section 212(3) and 212(5) of the Companies Act, 1956
Name of Subsidiary
Company
Financial
year
to which
accounts
relates
Holding Company's
interest as at close of
financial year of
subsidiary company
Shareholding %age
Net aggregate amount of

subsidiary company's profits after
deducting its losses or vice-versa,
so far as it concerns members
of Holding Company which are
not dealt within the Company's
account

subsidiary company's profit after
dealt within the Company's
accounts
For the
current
financial
year
{Profit /
(Loss)}
Rs. Million
For the
current
financial
year
Rs. Million
For the
previous
financial
years
{Profit / (Loss)}
Rs. Million
For the
previous
financial
years
Rs. Million
Holding
Company's
interest as at
December 31,
2010
incorporating
changes
since close
of financial
year of
Subsidiary
Company
Domestic :
2010
100.00
(0.14)
(8.26)
Nil
Nil
No change
2010
Ranbaxy Drugs and

Chemicals Company
(A public company with
unlimited liability)
2010
100.00
1.79
(233.19)
Nil
Nil
No change
100.00
23.49
6.29
Nil
Nil
No change

Ranbaxy SEZ Limited
2010
100.00
(0.05)
(0.48)
Nil
Nil
No change
2010
100.00
(0.02)
(0.07)
2010
100.00
(0.09)
25.18
Nil
Nil
No change
2010
98.00
0.61
2.27
Nil
Nil
No change
Ranbaxy Life Sciences Research Ltd.
2010
80.07
13.82
15.95
Nil
Nil
No change
Ranbaxy Malaysia Sdn. Bhd.

Malaysia
2010
68.09
127.64
449.10
9.28
5.22
No change
Ranbaxy (Hong Kong) Limited

Hong Kong
2010
100.00
48.57
74.09
Nil
Nil
No change
Ranbaxy N.A.N.V. $
Antilles, Netherlands
2010
100.00
11.21
(12.79)
Nil
Nil
No change
Basics GmbH
Germany
2010
100.00
63.05
253.14
Nil
Nil
No change
Ranbaxy (S.A.) (Proprietory)

South Africa
2010
100.00
103.60
261.49
Nil
Nil
No change
Sonke Pharmaceuticals (Pty) Ltd

South Africa
2010
68.40
30.25
(24.39)
Nil
Nil
No change
Ranbaxy Mexico SE.S.A.DE

Mexico
2010
100.00
(20.30)
Nil
Nil
No change
Ranbaxy Egypt (L.L.C.)

Egypt
2010
100.00
27.76
2.20
Nil
Nil
No change
Rexcel Egypt (L.L.C.)

Egypt
2010
100.00
5.12
(23.37)
Nil
Nil
No change
Ranbaxy (U.K.) Ltd.

United Kingdom
2010
100.00
(9.08)
(1,149.97)
Nil
Nil
No change
Ranbaxy Poland S.P. Z.o.o.

Poland
2010
100.00
10.61
26.70
Nil
Nil
No change
Ranbaxy Do Brazil Ltda

Brazil
2010
100.00
(2.81)
(12.97)
Nil
Nil
No change
Ranbaxy Nigeria Ltd.

Nigeria
2010
85.31
124.95
380.99
1.63
2.16
No change
Ranbaxy Unichem Company Ltd.

Thailand
2010
89.06
14.94
155.99
2.15
2.17
No change
Ranbaxy Farmaceutica Ltda.

Brazil
2010
100.00
271.48
(180.38)
Nil
Nil
No change
Overseas :
108
Name of Subsidiary
Company
Financial
year
to which
accounts
relates
Holding Company's
financial year of
subsidiary company
Shareholding %age

account

accounts
For the
current
financial
year
{Profit /
(Loss)}
Rs. Million
For the
current
financial
year
Rs. Million
For the
previous
financial
years
{Profit / (Loss)}
Rs. Million
For the
previous
financial
years
Rs. Million
Holding
Company's
interest as at
December 31,
2010
incorporating
changes
since close
of financial
year of
Subsidiary
Company
Ranbaxy-PRP (Peru) S.A.C.

Peru
2010
100.00
(5.27)
(16.41)
Nil
Nil
No change
Ranbaxy Europe Ltd.

United Kingdom
2010
100.00
15.34
40.98
Nil
Nil
No change
Ranbaxy Pharmaceutical, Inc.

USA
2010
100.00
1,453.66
1,736.20
Nil
Nil
No change
Ranbaxy, Inc,
USA
2010
100.00
7.83
2,549.35
Nil
Nil
No change
Ranbaxy USA, Inc.

USA
2010
100.00
2.05
66.31
Nil
Nil
No change
Ohm Laboratories Inc.

USA
2010
100.00
756.50
1,939.81
Nil
Nil
No change
Ranbaxy Laboratories Inc.

USA
2010
100.00
(683.30)
(378.53)
Nil
Nil
No change
Ranbaxy Signature LLC, USA

USA
2010
67.50
(19.97)
(357.10)
Nil
Nil
No change
Ranbaxy (Netherlands) B.V. (RNBV)

The Netherlands
2010
100.00
225.06
597.21
Nil
Nil
No change
Ranbaxy Holdings (U.K.) Ltd.

United Kingdom
2010
100.00
(0.39)
12.45
Nil
Nil
No change
Ranbaxy Ireland Ltd.

Ireland
2010
100.00
51.99
267.59
Nil
Nil
No change
ZAO Ranbaxy
Russia
2010
100.00
(104.00)
255.55
Nil
Nil
No change
Ranbaxy Pharmacie Generiques SAS

France
2010
100.00
(342.11)
(187.08)
Nil
Nil
No change
Ranbaxy Portugal - Com E Desenvolv

De Prod
Farmaceuticos Unipessoal Lda
Portugal
2010
100.00
(10.86)
(218.59)
Nil
Nil
No change
Laboratorios Ranbaxy, S.L.

Spain
2010
100.00
17.13
(801.06)
Nil
Nil
No change
Office Pharmaceutique Industriel Et

Hospitalier
SARL (OPIH SARL )
France
2010
100.00
(8.57)
(48.09)
Nil
Nil
No change
Ranbaxy Australia Pty. Ltd.

Australia
2010
100.00
(104.78)
(488.13)
Nil
Nil
No change
Ranbaxy Pharmaceuticals Canada Inc.

Canada
2010
100.00
77.77
470.26
Nil
Nil
No change
Ranbaxy Italia S.p.A

Italy
2010
100.00
(365.76)
(745.76)
Nil
Nil
No change
Ranbaxy Mexico S.A. de C.V.

Mexico
2010
100.00
(54.97)
(251.73)
Nil
Nil
No change
Terapia S.A.
Romania
2010
96.70
1,025.45
2,802.70
Nil
Nil
No change
Terapia Distributie SRL

Romania
2010
96.70
8.83
(194.61)
Nil
Nil
No change
109
Name of Subsidiary
Company
Financial
year
to which
accounts
relates
Holding Company's
financial year of
subsidiary company
Shareholding %age

account

accounts
For the
current
financial
year
{Profit /
(Loss)}
Rs. Million
For the
current
financial
year
Rs. Million
For the
previous
financial
years
{Profit / (Loss)}
Rs. Million
For the
previous
financial
years
Rs. Million
Holding
Company's
interest as at
December 31,
2010
incorporating
changes
since close
of financial
year of
Subsidiary
Company
Lapharma GmbH $
Germany
2010
100.00
(0.10)
(0.41)
Nil
Nil
No change
Ranbaxy Belgium N.V.

Belgium
2010
100.00
(24.64)
(17.01)
Nil
Nil
No change
Ranbaxy Japan KK $
Japan
2010
100.00
(13.42)
(0.41)
Nil
Nil
No change
Ranbaxy Pharma AB
Sweden
2010
100.00
(4.28)
(2.01)
Nil
Nil
No change
Be-Tabs Pharmaceuticals
(Proprietary) Ltd.
South Africa
2010
100.00
(213.48)
687.86
Nil
Nil
No change
Be-Tabs Investments (Proprietary) Ltd.

South Africa
2010
100.00
10.01
57.80
Nil
Nil
No change
Note:
(i)
In terms of approval granted by the Central Government under Section 212(8) of the Companies Act, 1956, the annual accounts of the subsidiary companies and
the related detailed information will be made available upon request by the investors of the Company and of its subsidiary companies. These documents will also
be available for inspection by any investor at the Head Office of the Company at 12th Floor, Devika Tower, 6, Nehru Place, New Delhi - 110019, and that of the
subsidiary companies concerned.
(ii)
The Board of Directors at its meeting held on November 11, 2010 approved for seeking exemption from the Government under Section 212(8) of the Companies
Act, 1956, in respect of all the subsidiary Companies.
Divested/ liquidated during the year.

Ranbaxy N.A.N.V. Antilles, Netherlands
Lapharma Gmbh, Germany
Ranbaxy Japan KK, Japan
On behalf of the Board of Directors
Dr. Tsutomu Une

Chairman
Arun Sawhney
Managing Director
Ranjit Kohli
Sushil K. Patawari
Company Secretary
Place : Gurgaon
110
Consolidated Financial Statements
Indian GAAP
Auditors report to the Board of Directors of Ranbaxy Laboratories Limited on the consolidated financial
statements of Ranbaxy Laboratories Limited and its subsidiaries and associates
1 We have audited the attached consolidated Balance Sheet of Ranbaxy Laboratories Limited, (the Company) its subsidiaries
and associates (collectively referred to as the Group) as at 31 December 2010, and also the consolidated Profit and Loss
Account and the consolidated Cash Flow Statement (collectively referred to as consolidated financial statements) for the
year ended on that date, annexed thereto. These consolidated financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
2 We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
3 We did not audit the financial statements and other financial information of certain subsidiaries and of certain associates
(interests in which have been incorporated in these consolidated financial statements). These subsidiaries and associates account
for 18% of total assets, 28% of total income and 12% of net cash flows from operating activities, as shown in these consolidated
financial statements. Of the above:
(a) The financial statements and other financial information of some of the subsidiaries incorporated outside India, as drawn
up in accordance with the generally accepted accounting principles of the respective countries (the local GAAP), have
been audited by other auditors duly qualified to act as auditors in those countries. These subsidiaries account for 16% of
total assets, 25% of total income and 8% of net cash flows from operating activities as shown in these consolidated financial
statements. For the purpose of preparation of the consolidated financial statements, the aforesaid local GAAP financial
statements have been restated by the management of the said entities so that these conform to the generally accepted
accounting principles in India. This has been done on the basis of a reporting package prepared by the Company which
covers accounting and disclosure requirements applicable to consolidated financial statements under the generally accepted
accounting principles in India. The reporting packages made for this purpose have been audited by the other auditors and
reports of those other auditors have been furnished to us. Our opinion on the consolidated financial statements, insofar as
it relates to these entities, is based on the aforesaid audit reports of those other auditors.
(b) The financial statements and other financial information of the remaining subsidiaries and associates have not been subjected
to audit either by us or by other auditors, and therefore, unaudited financial statements for the year ended 31 December
2010 of these entities have been furnished to us by the management. These subsidiaries and associates account for 2% of
total assets, 3% of total income and 4% of net cash flows from operating activities as shown in these consolidated financial
statements, and therefore are not material to the consolidated financial statements, either individually or in the aggregate.
4 We report that the consolidated financial statements have been prepared by the Companys management in accordance with
the requirements of Accounting Standards 21- Consolidated Financial Statements and Accounting Standard 23-Accounting for
Investments in Associates in Consolidated Financial Statements prescribed by the Companies (Accounting Standards) Rules, 2006.
5 Without qualifying our opinion, we draw attention to note 2 of schedule 23 of the consolidated financial statements, wherein
it has been stated that the Company continues to co-operate, for an effective resolution, with:
the Food and Drug Administration of the United States of America for import alert and warning letters issued primarily
relating to Good Manufacturing Practice for some of the products manufactured at certain manufacturing facilities of the
Company in India and Application Integrity Policy against one of its manufacturing facility in India; and
the Department of Justice of the United States of America regarding certain charges relating to possible issues with data
submitted by the Company in support of product filings.
Due to the inherent uncertainty of the outcome of the above mentioned matters, financial impact, if any, of the outcome cannot
be reliably ascertained at this stage, and accordingly, no adjustment has been made to these consolidated financial statements.
6 Without qualifying our report, we draw attention to note 11 of schedule 23 of the consolidated financial statements, wherein it is
stated that the appointment and remuneration of Mr.Arun Sawhney as the Managing Director of the Company with effect from
20 August 2010 has been approved by the Board of Directors, but the requisite regulatory approval from shareholders is yet to be
obtained. In accordance with the remuneration determined by the Board of Directors, Rs. 32.91 million (including commission)
has been accounted for as an expense in the consolidated Profit and Loss Account for the year ended 31 December 2010.
7 Based on our audit, and to the best of our information and according to the explanations given to us, and on consideration of
reports of other auditors on separate financial statements, and on consideration of the unaudited financial statements and on
other relevant financial information of the components, in our opinion the consolidated financial statements give a true and
fair view in conformity with the accounting principles generally accepted in India, in the case of:
(a) the Consolidated Balance Sheet, of the state of affairs of the Group as at 31 December 2010;
(b) the Consolidated Profit and Loss Account, of the profit of the Group for the year ended on that date; and
(c) the Consolidated Cash Flow Statement, of the cash flows of the Group for the year ended on that date.

For B S R & Co.


Vikram Aggarwal
Dated : 22 February 2011 Membership No. 089826
111
Consolidated Balance Sheet as at 31 December 2010

Schedule/
Note
SOURCES OF FUNDS
Shareholders funds
Share capital
Share application money pending allotment
1
23(3)
2
Minority interests
Loan funds
Secured loans
Unsecured loans
3
4
Deferred tax liability (net)
APPLICATION OF FUNDS
Fixed assets
Gross block
Less: Accumulated depreciation, amortisation and impairment
Net block
Capital work-in-progress
As at
31 December
2010
As at
31 December
2009
2,105.20
65.96
53,876.00
56,047.16
647.12
2,102.09
1,756.59
1.95
39,573.29
43,433.92
533.22
2,369.38
40,978.67
43,348.05
170.67
100,213.00
2,186.62
34,108.60
36,295.22
160.54
80,422.90
67,050.08
21,571.04
45,479.04
3,817.77
49,296.81
4,984.54
398.07
62,785.54
17,880.49
44,905.05
6,230.66
51,135.71
5,407.40
4,906.19
23(8)
Investments
Deferred tax asset (net)
Current assets, loans and advances
Inventories
Sundry debtors
Loans and advances
7
5
8
9
10
11
12
21,926.05
16,052.47
32,644.38
12,337.89
3,971.01
86,931.80
18,406.99
18,399.47
12,416.34
9,065.26
1,797.90
60,085.96
Less: Current liabilities and provisions

Current liabilities
Provisions
13
14
31,864.68
9,533.54
41,398.22
45,533.58
100,213.00
32,510.83
8,601.53
41,112.36
18,973.60
80,422.90
Net current assets

22
23
The schedules referred to above form an integral part of the Consolidated Balance Sheet
For B S R & Co.

Dr. Tsutomu Une

Chairman
Arun Sawhney
Managing Director
Vikram Aggarwal
Partner
Ranjit Kohli
Sushil K. Patawari
Company Secretary
Place : Gurgaon
Place : Gurgaon
Dated : 22 February 2011 Dated : 22 February 2011
112
Consolidated Profit and Loss Account for the year ended 31 December 2010
Schedule/
Note
INCOME
Operating income
Less: Excise duty
15
Other income
16
EXPENDITURE
Materials consumed
Personnel expenses
Interest expense
17
18
19
6
23(10)(b)
For the
year ended
31 December 2010
For the
year ended
31 December 2009
89,759.94
152.23
89,607.71
10,711.45
100,319.16
76,117.65
147.29
75,970.36
6,359.81
82,330.17
31,527.65
15,059.78
24,367.95
5,532.68
613.89
77,101.95
23,217.21
32,079.98
14,174.73
22,591.29
2,676.12
710.43
72,232.55
10,097.62
Profit before tax, share in loss of / diminution in the value

of investments in associates and minority interest
Tax charge (net)
20
5,848.76
Profit after tax and before share in loss of / diminution in
17,368.45
the value of investments in associates and minority interest
Less:
Share in loss of associates (net)
23(19)
59.15
Diminution in the value of investments in associates
23(5)
2,216.20
Minority interest in profit for the year (net)
23(18)
125.59
Profit for the year
14,967.51
Balance brought forward
(1,031.24)
Transfer from foreign projects reserve
4.59
Net profit available for appropriation
13,940.86
APPROPRIATIONS
Proposed dividend
842.08
139.86
Transfer to general reserve
1,149.00
Surplus / (deficit) carried forward to Reserves and Surplus
11,809.92
(Schedule 2)
Earnings per share (Rs.)
21
Basic - Par value of Rs 5 per share
35.57
Diluted - Par value of Rs 5 per share
31.48
22
Notes to the consolidated financial statements
23
The schedules referred to above form an integral part of the consolidated Profit and Loss Account
For B S R & Co.

Dr. Tsutomu Une

Chairman
Arun Sawhney
Managing Director
Vikram Aggarwal
Partner
Ranjit Kohli
Sushil K. Patawari
Company Secretary
Place : Gurgaon
Place : Gurgaon
Dated : 22 February 2011 Dated : 22 February 2011
113
6,990.87
3,106.75
32.38
109.45
2,964.92
(4,009.92)
13.76
(1,031.24)
(1,031.24)
7.05
4.60
Consolidated Cash Flow Statement for the year ended 31 December 2010
A. CASH FLOW FROM OPERATING ACTIVITIES
Net profit/ (loss) before taxes
Adjustments for :
Deferred employees compensation reversal
Unrealised foreign exchange (gain)/ loss (net)
Foreign exchange (gain)/ loss on integral operations
Fair valuation gain on derivatives
Dividend income
Profit on sale of long term investments
Unclaimed balances/ excess provision written back
(Reversal)/ provision for diminution in value of current investments
Interest expense
Interest income
Provisions/ write-off for doubtful debts, advances and other current assets (net)
Operating profit before working capital changes
Adjustments for :
(Increase)/ decrease in inventories
Decrease/ (increase) in sundry debtors
Decrease in loans and advances
(Increase)/ decrease in other current assets
Increase in trade / other payables
Cash generated from operating activities before taxes
Direct taxes paid (net of refunds)
Net cash generated from/ (used in) operating activities
B. CASH FLOW FROM INVESTING ACTIVITIES
Proceed from sale of fixed assets
Purchase of investments
Cash paid for acquisition of minority interest
Sale proceeds of investments (net of cash transferred)
Decrease/ (increase) in fixed deposit with original maturity of more than 90 days
Interest received
Dividend received
Net cash (used in)/ generated from investing activities
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of capital (including premium)
Increase/ (decrease) in short term bank borrowings (net)
Increase/ (decrease) in long term bank borrowings (net)
(Decrease)/ increase in other borrowings (net)
Short term borrowings from non convertible debentures
Re-payment of short term borrowings of non converable debentures
Interest paid
Dividend paid to minority shareholders of subsidiaries
Net cash generated from (used in) financing activities
INCREASE IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the beginning of the year
Effect of exchange loss on cash and cash equivalents
Notes :
Cash and cash equivalents include :
Cash and cheques in hand and remittances in transit
With banks in :
Current accounts
Deposit accounts
For the year ended

31 December 2010
For the year ended

31 December 2009
23,217.21
10,097.62
5,532.68
90.29
(3.45)
(976.52)
(204.15)
(5,473.50)
(91.70)
(2,404.19)
(464.10)
(124.88)
(4.36)
613.89
(1,585.67)
465.91
(4,629.75)
18,587.46
2,676.12
7.97
(8.17)
(2,013.55)
160.53
(8,932.47)
(9.78)
(533.22)
(858.40)
(137.67)
127.78
710.43
(1,106.21)
353.44
(9,563.20)
534.42
(3,805.05)
1,113.78
(5.23)
(870.87)
6,554.63
2,987.26
21,574.72
(6,188.77)
15,385.95
865.11
(5,774.95)
1,166.21
90.59
3,923.68
270.64
805.06
(2,426.31)
(1,621.25)
(4,983.41)
720.68
(4,080.97)
(0.79)
4,638.53
(18,885.09)
791.81
91.70
(21,707.54)
(5,220.51)
316.14
(237.46)
(739.54)
1,499.61
4,008.56
1,015.01
9.78
651.59
267.20
6,697.49
1,748.18
(197.61)
1,600.00
(1,600.00)
(597.90)
(9.17)
7,908.19
1,586.61
5,476.24
(250.75)
6,812.10
13.44
(2,830.91)
(1,644.52)
15.17
2,000.00
(2,000.00)
(769.59)
(6.28)
(5,222.69)
(6,192.35)
11,782.77
(114.18)
5,476.24
121.63
75.79
3,389.52
3,300.95
6,812.10
6,812.10
3,319.44
2,081.01
5,476.24
5,476.24

Add: Restricted cash
Fixed deposit pledged (restricted cash)
18.18
0.79
Unclaimed dividend
56.04
66.33
Fixed deposit with original maturity of more than 90 days
25,758.06
6,872.98
Cash and bank balances at the end of the year
32,644.38
12,416.34
Note: The above cash flow statement has been prepared under the indirect method set out in Accounting Standard 3 'Cash Flow Statement' specified in the
Companies (Accounting Standards) Rules, 2006.
For B S R & Co.

Dr. Tsutomu Une
Chairman
Arun Sawhney
Managing Director
Vikram Aggarwal
Partner
Ranjit Kohli
Sushil K. Patawari
Company Secretary
Place
Dated
: Gurgaon
Place
: 22 February 2011 Dated
: Gurgaon
: 22 February 2011
114
Schedules forming part of the consolidated financial statements for the year ended 31
December 2010
Schedule - 1
Share Capital
Authorised
598,000,000 (previous year 598,000,000 ) equity shares of Rs. 5 each
100,000 (previous year 100,000) cumulative preference shares of Rs. 100 each
Issued, subscribed and paid up

421,040,693 (previous year 420,417,358) equity shares of Rs. 5 each fully paid
As at
31 December
2010
As at
31 December
2009
2,990.00
10.00
3,000.00
2,990.00
10.00
3,000.00
2,105.20
2,105.20
2,102.09
2,102.09
Notes :
1. Issued, subscribed and paid up capital includes:
[i] 293,698,988 (previous year 293,698,988) equity shares of Rs. 5 each allotted as fully paid bonus shares by
capitalisation out of share premium and reserves.
[ii] 6,562,308 (previous year 6,562,308) equity shares of Rs. 5 each allotted as fully paid up pursuant to contract
without payment being received in cash.
[iii] 6,332,219 Global Depository Shares (GDSs) (previous year 5,501,185) representing 6,332,219 (previous year
5,501,185) equity shares of Rs.5 each constitute 1.50% (previous year 1.31%) of the issued subscribed and
paid-up share capital of the Company.
2. 268,711,323 (previous year 268,711,323) equity shares of Rs. 5 each are held by Daiichi Sankyo Co. Ltd., Japan
the holding company, also being the ultimate holding company.
Schedule - 2
(a) Capital reserve
71.77
71.77
Add: Forfeiture of equity share warrants
1,756.59

1,828.36
71.77
(b) Amalgamation reserve
43.75
43.75
(c) Revaluation reserve
71.16
185.11
Less: Utilised during the year
(2.51)
(113.95)
68.65
71.16
(d) Share premium account
35,564.75
37,862.18
Add: Received during the year
200.08
11.26
Add: Transfer from employees stock option outstanding
8.21
1.89
35,773.04
37,875.33
Less: Premium payable on redemption of Zero Coupon
Foreign Currency Convertible Bonds (FCCBs)
954.34
1,083.41
Less: Tax reversal for premium payable on redemption of FCCBs
1,227.17
34,818.70
35,564.75
(e) Foreign projects reserve
4.59
18.35
Less: Transfer to consolidated Profit and Loss Account
4.59
13.76
4.59
(f) Hedging reserve (net of tax)
(28.73)
(792.58)
163.14
763.85
134.41
(28.73)
115
December 2010
(g) Employee stock options outstanding

Less: Reversal of deferred employees compensation
Less: Transferred to share premium on exercise of stock option
(h) General reserve
Add: Transfer from consolidated Profit and Loss Account
(i) Foreign currency translation reserve
Add: Deduction during the year
(j) Surplus/(deficit) brought forward from the consolidated Profit and Loss Account
Schedule - 3
Secured loans
Loans from banks ^
Finance lease liability **
Notes :
As at
31 December
2010
As at
31 December
2009
57.61
3.45
8.21
67.67
8.17
1.89
45.95
57.61
4,370.28
1,149.00
5,519.28
4,370.28
4,370.28
449.35
(842.37)
(393.02)
11,809.92
53,876.00
1,287.42
(838.07)
449.35
(1,031.24)
39,573.29
2,055.31
314.07
2,369.38
1,807.60
379.02
2,186.62
11,963.75
19,672.40
9,184.83
157.69
40,978.67
5,684.54
20,475.40
7,771.19
177.47
34,108.60
19,672.40
1,239.65
19.78
2,487.67
19.78
Loans in Ranbaxy Laboratories Limited are borrowed against working capital facilities
sanctioned by scheduled banks. The Company has created a charge, on pari-passu
basis, by hypothecation of the current assets (both present and future) of the Company.
Further, loan taken by Ranbaxy (UK) Ltd. is secured against inventories and sundry
debtors (both present and future).
** Secured against assets taken on finance lease by Ranbaxy Pharmaceuticals Inc, United
States of America [Refer to note 9(a) of Schedule 23].
Schedule - 4
Unsecured loans
Short term loans from banks
Zero Coupon Foreign Currency Convertible Bonds (FCCBs) *#
Other loans #
From banks
From others
Notes :
*
The Company has outstanding FCCBs aggregating to US $ 440 million. The

bondholders have the option to convert FCCBs into equity shares of the Company at a
price of Rs. 716.32 per share (subject to adjustment, if any) with a fixed exchange rate
of Rs. 44.15 per US $ at any time on or after 27 April 2006 but before 9 March 2011.
Further, these FCCBs may be redeemed, in whole, at the option of the Company at
any time on or after 18 March 2009, but on or before 6 February 2011, subject to the
satisfaction of certain conditions. These FCCBs are redeemable on 18 March 2011,
at a premium of 26.765 percent (net of withholding tax) of their principal amount
unless previously converted, redeemed, purchased or cancelled.
# Loan due for repayment within one year
Zero coupon foreign currency convertible bonds (FCCBs)

Other loans:
From banks
From others
116
December 2010
Schedule - 5
Deferred tax asset/ liability (net)
Deferred tax asset arising on account of:
Provision for doubtful debts, advances and other current assets
Provision for employee retirement benefits
Tax losses carried forward
Others
Less: Deferred tax liability arising on account of:
Others
Aggregate of net deferred tax assets jurisdictions
Aggregate of net deferred tax liabilities jurisdictions
As at
31 December
2010
As at
31 December
2009
199.43
181.00
2,406.87
693.43
3,480.73
22.54
23.56
7,222.49
648.22
7,916.81
3,063.00
190.33
3,253.33
227.40
398.07
(170.67)
227.40
3,005.22
165.94
3,171.16
4,745.65
4,906.19
(160.54)
4,745.65
Notes :
In respect of entities with accumulated tax losses as at year end, no deferred tax asset (net) is recognized as at 31
December 2010 in excess of amount arrived at on test of virtual certainty. As at 31 December 2009, in the case of
Ranbaxy Laboratories Limited, on the basis of profit from operations made subsequent to year end, profit on sale of
materials relating to a First to File (FTF) product in the United States of America, milestone payment from an exclusivity
settlement and certain other factors, the Company believed that there was virtual certainty in respect of the carrying
amount of net deferred tax asset.
117
118
76.51
4.58
1,864.33
4,384.85
313.05
114.41
3.47
175.18
315.06
7,251.44
4,158.79
579.96
3.95
3.86
21,446.32
361.75
4,985.45
1,031.33
211.00
62,785.54
61,941.64
Additions
830.83
269.00
6,983.63
23,374.45
1,871.53
832.48
As at 1
January
2010
93.21
211.00
2,055.37
2,636.11
361.75
40.68
2.71
46.93
1.30
1,044.20
146.69
106.90
Deletions/
adjustments ^
(7.48)
(931.53)
(678.78)
(123.11)
(302.21)
(22.83)
(0.24)
0.22
(38.56)
(0.09)
(126.69)
(234.08)
(45.11)
(31.35)
Translation
Gross block
1,245.70
67,050.08
62,785.54
557.13
7.18
1.37
21,323.21
4,817.74
821.85
273.49
8,719.97
26,481.02
1,992.78
808.64
As at 31
December
2010 **
Gross block
48.48
253.74
13.81
0.06
12.51
253.73
13.81
0.06
607.28
211.00
17,880.49
17,041.97
520.70
361.75
2,823.43
287.66
0.33
3.16
1.18
1,137.30
10,677.41
821.26
428.03
As at 1
January
2010
779.71
8.70
0.05
3,005.31
223.93
Gross block
122.17
##
Software
Description
Patent, trade marks, designs and licences
1 - 6 years
Remaining useful lives

1 - 10 years
Remaining useful lives of intangible assets as at 31 December 2010 is as under:
## Includes Rs. 2.51 which has been adjusted against revaluation reserve (previous year Rs. 2.42).
Gross block
1.23
48.39
85.03
20.67
211.00
1,338.12
1,569.05
361.75
68.70
2.71
1.30
527.07
68.82
76.10
274.80
4.90
0.02
44.27
43.05
487.62
3.59
0.03
1,813.66
180.88
Impairment recognised
20.99
83.68
Net block
35.97
0.01
131.78
5,535.19
2,676.12
1,815.36
702.83
53.21
0.73
0.41
8.62
317.81
2,244.43
179.60
80.41
711.92
21,571.04
17,880.49
2,314.09
3,253.20
328.31
1.03
0.91
9.88
1,424.61
12,215.17
907.05
404.87
As at 31
December
2010 **
533.78
45,479.04
44,905.05
19,009.12
1,564.54
17.29
0.21
1,147.38
Net block
17.50
228.82
6.15
0.46
821.85
263.61
7,295.36
14,265.85
1,085.73
403.77
Net block
1.23
36.76
424.05
44,905.05
20,925.62
2,162.02
292.30
3.62
0.70
830.83
267.82
5,846.33
12,697.04
1,050.27
404.45
As at 31
December
2009
Net block
As at 31
December
2010 **
11.63
85.03
(6.47)
(506.52)
(268.55)
(21.97)
(204.36)
(12.56)
(0.03)
0.05
0.08
(29.20)
(179.60)
(24.99)
(27.47)
Accumulated depreciation,
amortisation and impairment
For the year
Deletions/ Translation
adjustments
The impairment loss has been determined using net selling price and owing to the prevelant market conditions of the product which was manufactured/ to be manufactured.
Plant and machinery

Furniture and fixtures
Assets taken on lease - Plant and machinery
Goodwill (Refer to note 5 of Schedule 23)
Patent rights, trade marks, designs and licences
Building
Description
#
Freehold land includes land valued at Rs. 25.48 (previous year Rs. 25.48) pending registration in the name of Ranbaxy Laboratories Limited
@ The impairment loss recognised during the year for each class of asset is given hereunder. No impairment loss was recognised during the previous year.
Land
Building
Plant and machinery
Vehicles
Description
Notes:
^ Deletion/ adjustments includes assets pertaining to New Drug Discovery Research Centre (Refer to note 4 of Schedule 23)
** The above includes the following assets held for disposal, which are being carried at the lower of their net block and net realisable value:
Tangible assets
Land
- Freehold#
- Leasehold
Buildings @
Plant and machinery @
Furniture and fixtures @
Vehicles
Assets taken on lease
- Building
- Plant and machinery @
- Vehicles
Intangibles assets
Goodwill @
Product development
Patent rights, trade marks, designs and
licences @ $
Computer software $
Non compete fee
Total
Previous Year
Description
Fixed assets
SCHEDULE - 6
Schedules forming part of the consolidated financial statements for the year ended 31 December 2010
December 2010
Nature of
investment
Schedule 7
Investments *
CURRENT
Trade:
Quoted (fully paid up)
Krebs Biochemicals & Industries Limited
Face
value
Equity shares Rs. 10
Non trade:
Unquoted
Certificate of deposits
Quoted
Orchid Chemicals and Pharmaceuticals Limited
0% NABARD-2019
6.85% IIFCL

Bonds
Rs. 10,000
Bonds
Rs. 100
LONG TERM
Investments in shares of companies
(fully paid-up)
Trade :
Unquoted
Sidmak Laboratories (India) Limited
Nimbua Greenfield (Punjab) Limited
Shivalik Solid Waste Management Limited
Biotech Consortium India Limited
Equity shares
Equity shares
Equity shares
Equity shares
Non trade:
Quoted
Fortis Healthcare Limited
The Great Eastern Shipping Company Limited
Associates
Quoted
Unquoted
Numbers
2010
1,050,000
2009
1,050,000
As at
31 Dec.
2010
As at
31 Dec.
2009
39.69
39.69
35.33
35.33
3,922.74
9,169,977
14,545
1,000,000
3,922.74
1,684.98
136.81
100.65
1,922.44
Rs. 10
Rs. 10
Rs. 10
Rs. 10
187,500
20,000
50,000
167,330
250,000
20,000
50,000
1.88
0.20
0.50
2.58
10.54
2.50
0.20
0.50
13.74

14,097,660
500
140.98
0.03
141.01
16,127,293
16,127,293
2,249.61
2,313.63
9,340,000
9,340,000
986.62
3,236.23
7,201.24
2,216.70
4,984.54
1,020.03
887.00
39.69
39.69
3,924.82
981.75
3,295.38
5,407.90
0.50
5,407.40
2,313.63
1,841.74
1,861.32
3,650.43
981.75
13.24
Less: Provision for diminution in value of long term investments (Refer to note 5 of Schedule 23)
Aggregate book value (net of impairment) of quoted investments in associate
Market value of quoted investments of associate
Aggregate book value of quoted investments of others
Market value of quoted investments of others
Aggregate book value (net of impairment) of unquoted investments of associate
Book value of unquoted investments in others
* Refer to note 12 of Schedule 23
119
December 2010
Schedule - 8
Inventories
Stores and spares
Raw materials
Packaging materials
Work-in-progress
Finished goods
Schedule - 9
Sundry debtors
Debts outstanding for a period exceeding six months
Secured
Unsecured
Considered good
Considered doubtful
Other debts
Secured
Unsecured, considered good
Less: Provision for doubtful debts
Schedule - 10
Cash balance on hand
Cheques in hand
Remittances in transit
Balances with banks in:
Current accounts
Deposit accounts #
Unclaimed dividend accounts
# Includes deposits pledged with Government Authorities/ earmarked for
retirement benefit obligations
Schedule - 11
Loan and advances
Secured loans to employees
Unsecured loans and advances:
Advances recoverable in cash or in kind or for value to be received
Considered good
Considered doubtful
Minimum alternate tax (MAT) credit entitlement
Advance income tax (net of provison for tax of respective tax jurisdictions)
Less: Provision for doubtful advances
120
As at
31 December
2010
As at
31 December
2009
160.05
5,912.90
764.99
6,018.17
9,069.94
21,926.05
140.64
5,600.07
715.55
5,692.12
6,258.61
18,406.99
0.06
0.65
1,640.08
1,093.88
2,734.02
2,757.28
763.65
3,521.58
1,360.56
13,051.77
14,412.33
17,146.35
1,093.88
16,052.47
1,525.24
14,116.30
15,641.54
19,163.12
763.65
18,399.47
25.22
96.41
12.49
3.35
59.95
3,389.52
29,077.19
56.04
32,644.38
18.18
3,319.44
8,954.78
66.33
12,416.34
0.79
49.94
55.32
3,877.06
146.51
8,308.34
102.55
12,484.40
146.51
12,337.89
4,102.58
77.42
4,720.65
186.71
9,142.68
77.42
9,065.26
December 2010
Schedule - 12
(Unsecured, considered good, except where provided for)
Export incentives accrued
Receivable towards unrealised gain on currency options / forward contracts
Insurance claims
Interest accrued but not due
Others
Considered good
Considered doubtful
Less: Provision for doubtful other current assets
Schedule - 13
Current liabilities
Sundry creditors *
Book overdraft
Interest accrued but not due on loans
Acceptances
Unclaimed dividend **
Payable towards unrealised loss on currency options/ forward contracts
Other liabilities
* Including advances from customers
** Not due for deposit to Investor Education & Protection Fund
Schedule - 14
Provisions
Employee retirement benefits #
Income-tax (net of advance income tax paid for respective jurisdictions)
Premium payable on redemption of FCCBs
Proposed dividend
Provision for contingency
# Refer to note 13 of Schedule 23
Schedule - 15
Operating income
Sales
Export incentives
Royalty, technical know-how and product development*
Income from settlement agreements
Non-compete fee (Refer to note 4 of Schedule 23)
Others
* Include prior period income Rs. 136.90 (previous year Rs. nil)
121
As at
31 December
2010
As at
31 December
2009
799.71
1,252.51
8.72
1,035.11
664.26
559.63
12.41
241.38
874.96
16.35
3,987.36
16.35
3,971.01
320.22
25.84
1,823.74
25.84
1,797.90
18,976.67
470.64
58.29
56.04
11,261.13
1,041.91
31,864.68
14,393.92
49.78
36.37
1.75
66.33
16,669.65
1,293.03
32,510.83
2,547.59
355.89
5,648.12
842.08
139.86
9,533.54
2,342.51
1,501.96
4,693.79
63.27
8,601.53
Year ended
31 December
2010
Year ended
31 December
2009
85,506.73
85,506.73
786.63
799.14
2,292.59
210.00
164.85
4,253.21
89,759.94
73,441.32
73,441.32
546.80
505.92
1,441.15
182.46
2,676.33
76,117.65
December 2010
Schedule - 16
Other income
Interest
Dividend
Profit on sale of assets [net of loss Rs. 37.23
(previous year Rs. 26.54)]
Profit on sale of investments [net of loss Rs. 11.06
(previous year Rs. nil)]
Exchange gain on loans (net)
Exchange gain (other than on loans) (net)
[Refer to note 10(a) of Schedule 23]
Reversal of deferred employee compensation
Unclaimed balances/ excess provisions written back
Reversal of provision for diminution in the value of current
investment
Lease rental [Refer to note 9(c) of Schedule 23]
Miscellaneous
Schedule - 17
Materials consumed
Raw materials consumed
Packaging materials consumed
Increase in work-in-progress and finished goods
Opening stock
Work-in-progress
Finished goods
Less :
Closing stock
Work-in-progress
Finished goods
(Increase) / decrease
Increase/ (decrease) in excise duty
Schedule - 18
Personnel expenses
Contribution to provident and other funds
Schedule - 19
Advertising and sales promotion
Legal and professional
Power and fuel
Clinical trials
Commission
Processing charges
Rent [Refer to note 9(b) of Schedule 23]
Regulatory filing fee
122
Year ended
31 December 2010
Year ended
31 December 2009
1,585.67
91.70
124.88
1,106.21
9.78
137.67
2,404.19
533.22
1,406.98
4,105.44
1,493.13
1,931.23
3.45
464.10
4.36
8.17
858.40
63.00
457.68
10,711.45
282.00
6,359.81
17,031.78
1,410.08
3,171.59
12,819.80
20,136.53
1,380.63
2,613.08
7,020.12
5,692.12
6,258.61
11,950.73
4,836.53
8,056.82
12,893.35
6,018.17
9,069.94
15,088.11
5,692.12
6,258.61
11,950.73
(3,137.38)
231.78
31,527.65
942.62
(13.00)
32,079.98
12,918.94
1,194.14
12,197.98
1,108.23
946.70
15,059.78
868.52
14,174.73
4,438.02
2,400.14
2,257.12
2,004.98
1,514.67
1,209.96
1,159.09
1,071.51
860.61
671.07
4,238.28
3,115.02
1,868.36
1,657.75
1,268.54
454.89
1,346.12
1,125.32
840.25
571.47
December 2010
Year ended
31 December 2010
Year ended
31 December 2009
79.19
314.86
501.68
56.13
90.29
25.59
465.91
67.15
253.52
449.86
273.22
7.97
24.74
353.44
1,052.51
24,367.95
127.78
1,334.90
22,591.29
5,016.26
(3,587.69)
4,401.29
18.90
5,848.76
4,558.31
(3,501.65)
5,888.49
35.50
10.22
6,990.87
14,967.51
2,964.92
(803.00)
14,164.51
(904.20)
2,060.72
420,731,680
420,380,856
2,071,594
27,119,165
449,922,439
819,480
27,119,165
448,319,501
5.00
5.00
35.57
31.48
7.05
4.60
1,306,730
23,834,333
5,418,730
Market research
Communication
Analytical charges
Insurance
Claims paid
Rates and taxes
Clawback expense
Conferences and meetings
Buildings
Plant and machinery
Others
Cash discounts
Excise duty
Provisions/ write-off for doubtful debts, advances and other
current assets
Provision for diminution in value of current investment
Miscellaneous
Schedule - 20
Tax charge (net)
Current income-tax
Minimum alternative tax credit entitlement
Deferred tax charge
Fringe benefit tax
Tax - earlier years #
#Net of credit adjusted of Rs. 23.34 (previous year Rs. 6.50)
Schedule - 21
Earnings per share
Net profit attributable to equity shareholders
Profit after tax
Less:
Exchange gain on FCCBs
Number of weighted average equity shares
Basic
Effect of dilutive equity shares on account of *
FCCBs
Diluted
Nominal value of equity share (Rs.)

Basic
(A/C)
Diluted
(B/D)
* Following are the potential equity shares considered to be
anti dilutive in nature, hence these have not been adjusted to
arrive at the dilutive earning per share:
123
570.10
472.65
459.85
452.65
437.12
424.79
356.72
339.84
253.95
250.86
176.09
661.39
433.20
152.45
471.41
100.27
450.42
397.69
172.18
210.31
163.39
Schedules forming part of the consolidated financial statements

Schedule - 22
Basis of accounting
The consolidated financial statements have been prepared and presented under the historical cost convention on the
accrual basis of accounting and comply with the Accounting Standards as specified in the Companies (Accounting
Standards) Rules, 2006, other pronouncements of the Institute of Chartered Accountants of India (ICAI) and other
generally accepted accounting principles in India and guidelines issued by the Securities and Exchange Board of India,
to the extent applicable.
Principles of consolidation
The consolidated financial statements include the financial statements of Ranbaxy Laboratories Limited, (Parent
Company), its subsidiaries and associates (collectively known as the Group).
Name of subsidiaries / associates
Subsidiaries
Ranbaxy Australia Pty. Ltd.
Ranbaxy Belgium N.V.
Ranbaxy Farmaceutica Ltda.
Ranbaxy Do Brazil Ltda.
Ranbaxy Pharmaceuticals Canada Inc.
Ranbaxy Egypt (L.L.C.)
Rexcel Egypt (L.L.C.)
Ranbaxy Pharmacie Generiques SAS
Office Pharmaceutique Industriel Et
Hospitalier SARL
Basics GmbH
Lapharma GmbH (upto 16 December 2010)
Ranbaxy (Hong Kong) Limited
Solrex Pharmaceuticals Company#
Ranbaxy SEZ Limited
Ranbaxy Ireland Limited
Ranbaxy Italia S.p.A
Ranbaxy Japan KK (from 9 November 2009 to
16 September 2010)
Ranbaxy (Malaysia) Sdn. Bhd.
Ranbaxy Nigeria Limited.
Ranbaxy PRP (Peru) SAC.
Ranbaxy Poland S.P. Zoo
Ranbaxy Portugal - Com E Desenvolv De Prod
Farmaceuticos Unipessoal Lda
Country of
incorporation
Effective group
shareholding (%)
Australia
Belgium
Brazil
Brazil
Canada
Egypt
Egypt
France
France
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Germany
Germany
Hong Kong
India
India
India
India
India
India
India
India
India
Ireland
Italy
Japan
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
98.00
80.07
100.00
100.00
100.00
Malaysia
Nigeria
Peru
Poland
Portugal
68.09
85.31
100.00
100.00
100.00
124

Schedule - 22
Name of subsidiaries / associates
Terapia S.A.
Terapia Distributie S.R.L.
ZAO Ranbaxy
Ranbaxy (S.A.) Proprietary Limited
Be-Tabs Pharmaceuticals (Proprietary) Ltd.
Be-Tabs Investments (Proprietary) Ltd.
Sonke Pharmaceuticals (Pty.) Ltd.
Laboratorios Ranbaxy, S.L.
Ranbaxy Pharma AB
Ranbaxy (Netherlands) BV
Ranbaxy NANV (upto 17 November 2010)
Ranbaxy Unichem Co. Ltd.*
Ranbaxy (UK) Ltd.
Ranbaxy Holdings (UK) Ltd.
Ranbaxy (Europe) Ltd.
Ranbaxy Inc.
Ranbaxy Pharmaceuticals, Inc.
Ranbaxy USA, Inc.
Ohm Laboratories, Inc.
Ranbaxy Laboratories Inc.
Ranbaxy Signature LLC
Ranbaxy Mexico S.A.de C.V., Mexico
(from 13 November 2009)
Ranbaxy Mexico Servicios S.A.de C.V., Mexico
Associates
Country of
incorporation
Romania
Romania
Russia
South Africa
South Africa
South Africa
South Africa
Spain
Sweden
The Netherlands
The Netherlands
Thailand
United Kingdom
United Kingdom
United Kingdom
United States of America
Mexico
Effective group
shareholding (%)
96.70
96.70
100.00
100.00
100.00
100.00
68.40
100.00
100.00
100.00
100.00
89.09
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
67.50
100.00
Mexico
100.00
India
India
46.84
24.91
# A partnership firm, in which two subsidiaries of the Parent Company are partners.
* 88.56% till 15 February 2010
The following subsidiaries / joint venture were closed / sold during the previous year:
Subsidiaries
Ranbaxy (Guangzhou China) Ltd., China (upto 29 December 2009)
Ranbaxy Hungary Kft, Hungary (upto 22 May 2009)
Ranbaxy Vietnam Company Limited, Vietnam (upto 05 October 2009)
Joint venture
Nihon Pharmaceuticals Industry Co. Ltd., Japan (Investment made by Ranbaxy (Netherlands) BV, The
Netherlands) (upto 8 December 2009)
The consolidated financial statements have been combined on a line-by-line basis by adding the book values of like
items of assets, liabilities, income and expenses after eliminating intra-group balances/transactions and unrealised
profits in full. The amounts shown in respect of reserves comprise the amount of the relevant reserves as per the
Balance Sheet of the Parent Company and its share in the post-acquisition increase/decrease in the reserves of the
consolidated entities.
125

Schedule - 22
An investment in an associate has been accounted for by the equity method of consolidation from the date on which it
falls within the definition of associates in accordance with Accounting Standard-23 Accounting for investments in Associates
in Consolidated Financial Statements.
The excess/deficit of cost to the Parent Company of its investment over its portion of net worth in the consolidated
entities at the respective dates on which investment in such entities was made is recognised in the consolidated financial
statements as goodwill/capital reserve. The Parent Companys portion of net worth in such entities is determined
on the basis of book values of assets and liabilities as per the financial statements of the entities as on the date of
investment and if not available, the financial statements for the immediately preceding period adjusted for the effects
of significant changes.
Entities acquired/ sold during the year have been consolidated from/ upto the respective date of their acquisition/
disposal.
The consolidated financial statements are presented, to the extent possible and required, in the same format as that
adopted by the Parent Company for its separate financial statements.
Use of estimates
The preparation of consolidated financial statements in conformity with generally accepted accounting principles
(GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements, and reported
amounts of revenues and expenses for the year. Examples of such estimates include provisions of future obligation
under employee retirement benefit plans, the useful lives of fixed assets and intangible assets, provision for sales return
and impairment of assets etc.
Further, in the United States of America, certain rebates and allowances including chargebacks and price equalization
etc. are given to customers which are recorded as reductions from the gross revenues. The computation of the estimate
for these rebates and allowances involves significant judgment based on various factors including historical experience,
estimated inventory levels and expected sell-through levels in supply chain.
Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the
current and future periods.
Fixed assets and depreciation
Fixed assets are stated at the cost of acquisition or construction, less accumulated depreciation and impairment losses.
Cost comprises the purchase price and any attributable costs of bringing the assets to their working condition for
intended use.
Borrowing costs directly attributable to acquisition or construction of fixed assets, which necessarily take a substantial
period of time to be ready for their intended use, are capitalised.
Depreciation on fixed assets, except leasehold improvements (included in furniture and fixtures), is provided on pro-rata
basis using the straight-line method and at the rates reflective of estimate useful lives of fixed assets, unless minimum
rates subscribed by respective local laws. Leasehold improvements are depreciated over their estimated useful life, or
the remaining period of lease from the date of capitalisation, whichever is shorter.
The managements estimate of the useful lives for various categories of fixed assets are given below
Years
Building
29 61
Plant and machinery
3 33
Furniture and fixtures
3 17
Vehicles
4 10
Assets costing individually Rs. 5,000 or less are fully depreciated in the year of purchase.
126

Schedule - 22
Intangible assets and amortisation
Intangible assets comprise goodwill, patents, trademarks, designs and licenses, software, non-compete fee and product
development rights, and are stated at cost less accumulated amortisation and impairment losses, if any.
These are amortised over their estimated useful lives on a straight-line basis, commencing from the date the asset
is available to the entities for its use. The management estimates the useful lives for the various intangible assets as
follows:
Years
5 10
6
Term of the respective agreements ranging
from 1 to 10 years
5
Patents, trademarks, designs and licenses

Software
Non-compete fee
Product development
Goodwill reflects the excess of cost of acquisition over the book value of net assets acquired on the date of the
acquisition. Goodwill is tested for impairment on an annual basis.
Impairment of assets
The carrying values of assets other than goodwill are reviewed at each reporting date to determine if there is indication
of any impairment. Goodwill is tested for impairment at least once in year. If any indication exists, the assets recoverable
amount is estimated. For assets that are not yet available for use, the recoverable amount is estimated at each reporting
date. An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit exceeds
its recoverable amount and is recognised in the Consolidated Profit and Loss Account. An impairment loss (other than
impairment loss on goodwill) is reversed if there has been a change in the estimates used to determine the recoverable
amount. An impairment loss for goodwill is reversed only if the impairment loss was caused due to specific external
events of an exceptional nature, that is not expected to reoccur and subsequent external events have occurred that
reverse the effect of that event.
An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount
that would have been determined net of depreciation or amortisation, if no impairment loss had been recognised.
Revenue recognition
Revenue from sale of goods is recognised on transfer of significant risks and rewards of ownership to the customer.
Revenue includes excise duty and is shown net of sales tax, value added tax and applicable discounts and allowances.
Allowances for sales returns are estimated and provided for in the year of sales.
Service income is recognised as per the terms of contracts with customers when the related services are rendered, or
the agreed milestones are achieved.
Income from royalty, technical know-how arrangements, exclusivity and patents settlement, licensing arrangements is
recognised on accrual basis in accordance with the terms of the relevant agreement.
Non-compete fee is recognised over the term of the agreement on a straight line basis.
Export entitlements are recognised as income when the right to receive credit as per the terms of the scheme is
established in respect of the exports made and where there is no uncertainty regarding the ultimate collection of the
relevant export proceeds.
Profit on sale of investments is recognised as income in the period in which the investment is sold/ disposed off.
Dividend income is recognised when the right to receive the income is established. Income from interest on deposits,
loans and interest bearing securities is recognised on the time proportionate method.
Investments
Investments that are readily realisable and intended to be held for not more than a year are classified as current
investments. All other investments are classified as long-term investments.
127

Schedule - 22
Current investments are carried at the lower of cost and fair value, determined on an individual investment basis.
Long-term investments are carried at cost less any other-than-temporary diminution in value, determined separately
in respect of each individual investment.
Inventories
Raw material, packaging material and stores and spare parts are carried at cost. Cost includes purchase price, other
than those subsequently recoverable by the enterprise from the concerned revenue authorities, freight inwards and
other expenditure incurred in bringing such inventories to their present location and condition. In determining the
cost, weighted average cost method is used. The carrying cost of raw materials, packaging materials and stores and
spare parts are appropriately written down when there is a decline in replacement cost of such materials and finished
products in which they will be incorporated are expected to be sold below cost.
Work in progress, manufactured finished goods and traded goods are valued at the lower of cost and net realisable
value. Work in progress includes Active Pharmaceutical Ingredients manufactured and lying at plants for captive
consumption. The comparison of cost and net realisable value is made on an item by item basis. Cost of work in
progress and manufactured finished goods is determined on the weighted average basis and comprises direct material,
cost of conversion and other costs incurred in bringing these inventories to their present location and condition. Cost
of traded goods is determined on a weighted average basis.
Excise duty liability is included in the valuation of closing inventory of finished goods.
Research and development costs
Revenue expenditure on research and development is expensed out under the respective heads of account in the year
in which it is incurred.
Expenditure on development activities, whereby research findings are applied to a plan or design for the production of
new or substantially improved products and processes, is capitalised, if the cost can be reliably measured, the product or
process is technically and commercially feasible and the entity has sufficient resources to complete the development and
to use and sell the asset. The expenditure capitalised includes the cost of materials, direct labour and an appropriate
proportion of overheads that are directly attributable to preparing the asset for its intended use. Other development
expenditure is recognised in the Consolidated Profit and Loss Account as an expense as incurred.
Capitalised development expenditure is stated at cost less accumulated amortisation and impairment losses. Fixed
assets used for research and development are depreciated in accordance with the Groups policy.
Materials identified for use in research and development process are carried as inventories and charged to Consolidated
Profit and Loss Account on issuance of such materials for research and development activities.
Cash and cash equivalent
Cash and cash equivalents comprise cash balances on hand, cash balance with bank, and highly liquid investments with
remaining maturities, at the date of purchase/investment, of three months or less.
Employee stock option based compensation
The Company calculates the compensation cost based on the intrinsic value method wherein the excess of value of
underlying equity shares as of the date of the grant of options over the exercise price of the options given to employees
under the employee stock option schemes of the Company, is recognised on a straight line basis and amortised over
the vesting period on a straight line basis. The Company follows SEBI guidelines for accounting of employee stock
options.
Foreign currency transactions
The reporting currency of the Group is the Indian Rupee. However, the local currencies of non-integral overseas
subsidiaries are different from the reporting currency of the Group.
Transactions in foreign currency, derivatives and hedging
Transactions in foreign currency are recorded at the exchange rate prevailing at the date of the transaction. Exchange
128

Schedule - 22
differences arising on foreign currency transactions settled during the year are recognised in the Consolidated Profit
and Loss Account.
Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date, not covered by
forward exchange contracts, are translated at year end rates. The resultant exchange differences are recognised in the
Consolidated Profit and Loss Account. Non-monetary assets are recorded at the rates prevailing on the date of the
transaction.
The Company uses various forms of derivative instruments such as foreign exchange forward contracts, options, cross
currency swaps and interest rate swaps to hedge its exposure on account of movements in foreign exchange and interest
rates. These derivatives are generally entered with banks and not used for trading or speculation purposes. These
derivative instruments are accounted as follows:

For forward contracts which are entered into to hedge the foreign currency risk of the underlying outstanding
on the date of entering into that forward contract, the premium or discount on such contracts is amortised as
income or expense over the life of the contract. Any profit or loss arising on the cancellation or renewal of
forward contracts is recognised as an income or expense for the period. The exchange difference on such a forward
exchange contract is calculated as the difference between(a) the foreign currency amount of the contract translated at the exchange rate at the Balance Sheet date, or the
settlement date where the transaction is settled during the reporting period, and
(b) the same foreign currency amount translated at the later of the date of inception of the forward exchange
contract and the last reporting date. Such exchange differences are recognised in the Consolidated Profit and
Loss Account in the reporting period in which the exchange rates change.
Other derivatives such as forward and option contracts, cross currency swaps and interest rate swaps etc are fair
valued at each Balance Sheet date. The resultant gain or loss (except relating to effective portion of cash flow
hedges) from these transactions are recognised in the Consolidated Profit and Loss Account.The gain or loss on
effective portion of cash flow hedges is recorded in the Hedging Reserve (reported under the head Reserves and
Surplus) until occurrence of hedged transaction.Upon occurrence of the hedged transaction, such gain or loss
is transferred to the Consolidated Profit and Loss Account of that period.To designate a derivative instrument
as an effective cash flow hedge, the management objectively evaluates and evidences with appropriate supporting
documents at the inception of each contract and throughout the period of hedge relationship whether the contract
is effective in achieving offsetting cash flows attributable to the hedged risk. The gain or loss on ineffective portion
of cash flow hedge is recognised in the Consolidated Profit and Loss Account.
Integral and non-integral operations

The consolidated financial statements of the foreign integral subsidiaries and representative offices (collectively referred
to as the foreign integral operations) are translated into Indian Rupees as follows:

Non-monetary Balance Sheet items, other than inventories, are translated using the exchange rate at the date of
transaction i.e., the date when they were acquired.
Monetary Balance Sheet items and inventory are translated using year-end rates.
Profit and Loss items, except opening and closing inventories and depreciation, are translated at the respective
monthly average rates. Opening and closing inventories are translated at the rates prevalent at the commencement
and close respectively of the accounting period. Depreciation is translated at the rates used for the translation of
the values of the assets on which depreciation is calculated.
Contingent liabilities are translated at the closing rate.
The net exchange difference resulting from the translation of items in the financial statements of foreign integral
operations is recognised as income or expense for the year.
The financial statements of the foreign non integral subsidiaries (collectively referred to as the foreign non integral
operations) are translated into Indian Rupees as follows: Share capital and opening reserves and surplus are carried at historical cost.
129

Schedule - 22

All assets and liabilities, both monetary and non-monetary, (excluding share capital, opening reserves and surplus)
are translated using the year-end rates.
Profit and Loss items are translated at the respective monthly average rates.
Contingent liabilities are translated at the closing rate.
The resulting net exchange difference is credited or debited to the foreign currency translation reserve.
A reclassification from foreign integral operations to foreign non-integral operations or vice versa is made consequent
to change in the way operations of entities are financed and operates. The translated amounts for non-monetary items
of reclassified entities on the date of such reclassification are treated as the historical cost for those items in the period
of change and subsequent periods. Exchange differences which have been deferred in foreign currency translation
reserve are not recognised as income or expenses until the disposal of that entity.
Employee benefits
Short term employee benefits
All employee benefits payable / available within twelve months of rendering the service are classified as short-term
employee benefits. Benefits such as salaries, wages and bonus etc., are recognised in the Consolidated Profit and Loss
Account in the period in which the employee renders the related service.
Defined benefit plans
Gratuity
Indian entities of the Group have an obligation towards gratuity, a defined benefit retirement plan covering eligible
employees. The plan provides for a lump sum payment to vested employees at retirement, death while in employment or
on termination of employment of an amount based on the respective employees salary and the tenure of employment.
Vesting occurs upon completion of five years of service. These entities make annual contributions to gratuity fund
established as trust.
Provident fund
In respect of employees, Indian entities of the Group makes specified monthly contribution towards the employees
provident fund to the provident fund trust administered by the Parent Company. The minimum interest payable by
the provident fund trust to the beneficiaries every year is notified by the Government. These Indian entities have an
obligation to make good the shortfall, if any, between the return on receptive investments of the trust and the notified
interest rate.
Pension
The Indian entities have an obligation towards pension, a defined benefit retirement plan covering eligible employees.
The plan provides for a lump sum payment to vested employees at retirement, death while in employment or on
termination of employment of an amount based on the respective employees salary and the tenure of employment.
Vesting occurs upon completion of 20 years of service.
Retirement pension payment plan
Ranbaxy Pharmacie Generiques SAS and one of its subsidiary companies in France also has a retirement pension
payments plan as per collective agreement. The payment is made at the time of retirement.
Valuation
The liability in respect of defined benefit plans, other than provident fund schemes, is accrued in the books of account
on the basis of actuarial valuation carried out by an independent actuary primarily using the Projected Unit Credit
Method, which recognises each year of service as giving rise to additional unit of employee benefit entitlement and
measure each unit separately to build up the final obligation. The obligation is measured at the present value of
estimated future cash flows. The discount rates used for determining the present value of obligation under defined
benefit plans, is based on the market yields on Government securities as at the Balance Sheet date, having maturity
130

Schedule - 22
periods approximating to the terms of related obligations. Actuarial gains and losses are recognised immediately in the
Consolidated Profit and Loss Account. Gains or losses on the curtailment or settlement of any defined benefit plan are
recognised when the curtailment or settlement occurs.
The contributions made to provident fund trust are charged to Consolidated Profit and Loss Account as and when
they become payable. In addition, the Indian entities recognises liability for shortfall in the plan assets vis--vis the fund
obligation, if any. The Guidance on implementing Accounting Standard 15- Employee Benefits (revised 2005) issued by
Accounting Standard Board (ASB) states that benefits involving employer established provident funds, which require
interest shortfalls to be recompensed are to be considered as defined benefit plans. Pending the issuance of the guidance
note from the Actuarial Society of India, actuary of these entities have expressed an inability to reliably measure
provident fund liabilities. Accordingly, the Group is unable to exhibit the related information.
Defined contribution plans
Under certain retirement benefits plans of entities in the Group, there are a defined contribution plans such as
superannuation, social security schemes etc. These entities pay fixed contributions and have no obligation to pay
further amounts. Such fixed contributions are recognised in the Consolidated Profit and Loss Account on accrual basis.
Other long term employee benefits
Compensated absences
In respect of certain entities of the Group, as per that entitys policy, eligible leaves can be accumulated by the employees
and carried forward to future periods to either be utilised during the service, or encashed. Encashment can be made
during service, on early retirement, on withdrawal of scheme, at resignation and upon death of the employee. The
value of benefits is determined based on the seniority and the employees salary.
Valuation
These entities account for the liability for compensated absences payable in future and long service awards based on
an independent actuarial valuation using the Projected Unit Credit Method as at the year end. Actuarial gains and
losses are recognised immediately in the Consolidated Profit and Loss Account. Gains or losses on the curtailment or
settlement of any defined benefit plan are recognised when the curtailment or settlement occurs.
Long service award
As per the Parent Companys policy, employees of the Parent Company are eligible for an award after completion of
specified number of years of service with the Parent Company.
Taxes on income
Income tax expense comprises current and deferred tax. Income tax expense in Consolidated Profit and Loss Account
is the aggregate of the amounts of tax expense appearing in the separate financial statements of the Parent Company
and its subsidiaries.
The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to each
entity using tax rates enacted or substantially enacted at the Balance Sheet date.
Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable
income for the period of each entity in the Group. The deferred tax charge or credit and the corresponding deferred
tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the Balance
Sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be
realised in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are
recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed at each
Balance Sheet date and are written-down or written-up to reflect the amount that is reasonably / virtually certain (as
the case may be) to be realised. The break-up of the major components of the deferred tax assets and liabilities as at
Balance Sheet date has been arrived at after setting off deferred tax assets and liabilities where the entity has a legally
enforceable right to set-off assets against liabilities and where such assets and liabilities relate to taxes on income levied
by the same governing taxation laws.
131

Schedule - 22
Minimum alternate tax payable under the provisions of the Income-tax Act 1961 is recognised as an asset in the year
in which credit become eligible and is set off to the extent allowed in the year in which the Indian entity becomes liable
to pay income tax at the enacted tax rates.
Provisions, contingent liabilities and contingent assets
A provision is created when there is a present obligation as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is
made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of
resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Provision for onerous contracts, i.e. contracts where the expected unavoidable costs of meeting the obligations under
the contract exceed the economic benefits expected to be received under it, are recognised when it is probable that
an outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an
obligating event, based on a reliable estimate of such obligation.
The Group does not recognise assets which are of contingent nature until there is virtual certainty of realisability of
such assets. However, if it has become virtually certain that an inflow of economic benefits will arise, asset and related
income is recognised in the consolidated financial statements of the period in which the change occurs.
Leases
Operating leases
Lease arrangements, where the risks and rewards incidental to ownership of an asset substantially vest with the lessor,
are recognised as an operating lease. Lease payments under operating lease are recognised as an expense in the
Consolidated Profit and Loss Account on a straight-line basis over the lease period.
The assets given under operating lease are shown in the Consolidated Balance Sheet under fixed assets and depreciated
on a basis consistent with the depreciation policy of the Company. The lease income is recognised in the Consolidated
Profit and Loss Account on a straight-line basis over the lease period.
Finance leases
Assets taken on a finance lease are capitalised at an amount equal to the fair value of the leased assets or the present
value of minimum lease payments at the inception of the lease, whichever is lower. Such leased assets are depreciated
over the lease tenure or the useful life, whichever is shorter. The lease payment is apportioned between the finance
charges and reduction of outstanding liability. The finance charge is allocated to the periods over the lease tenure to
produce a constant periodic rate of interest on the remaining liability.
Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders
by the weighted average number of equity shares outstanding during the year. The weighted average number of equity
shares outstanding during the year are adjusted for events of bonus issue and share split. For the purpose of calculating
diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted
average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
The dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been
issued at a later date.
132

Schedule - 23
1. Background

Ranbaxy Laboratories Limited (the Company or the group) together with its subsidiaries and associates
operates as an integrated international pharmaceuticals organisation with businesses encompassing the entire
value chain in the marketing, production and distribution of pharmaceuticals products.

The Group presently has manufacturing facilities in eight countries, namely India, the United States of America,
Brazil, Ireland, Malaysia, Nigeria, Romania and South Africa. The Groups major markets include the United
States of America, India, Europe, Russia/ CIS and South Africa. The research and development activities of the
Group are principally carried out at its facilities in Gurgaon, near New Delhi, India.

The Companys shares are listed for trading on the National Stock Exchange and the Bombay Stock Exchange in
India. Its Global Depository Share (representing equity shares of the Company) are listed on the Luxembourg Stock
Exchange and Foreign Currency Convertible Bonds (FCCBs) are listed on the Singapore Stock Exchange.
2.

3.
Food and Drug Administration (FDA) and Department of Justice (DOJ) of United States of
America (USA)
On 16 September 2008, the Company received two warning letters and an Import Alert from the USA FDA,
covering 30 generic drugs being manufactured at its Paonta Sahib and Dewas manufacturing facilities in India.
The issue raised in the warning letters relate to Current Good Manufacturing Practice being followed at the
said plants and does not in any way raises questions on products quality, safety or effectiveness.
On 25 February 2009, the Company received a letter from the USA FDA indicating that the Agency had invoked
its Application Integrity Policy (AIP) against the Paonta Sahib facility (the facility). The management of the
Company believes that there was no falsification of data generated at the facility and also believes that there is
no indication of a pattern and practice of submitting untrue statements of material facts and there was no other
improper conduct. Accordingly, the Company, based on opinion from its legal council, believes that there is no
incremental present obligation existing at the balance sheet date on account of these notices.
In the year 2008, the DOJ, USA had filed certain charges against the Company citing possible issues with the
data submitted by the Company, in support of product filing. The Company continues to work diligently with the
concerned authorities towards resolution of the issue.
While the Company continues to fully cooperate with the concerned authorities for effective resolution of these
matters, due to inherent uncertainty of the related situation, the outcome of the above mentioned matters, including
any financial impact, cannot be reliably ascertained at this stage. Accordingly, no adjustment has been made to
the financial statements.
On 20 October 2008, the Company had issued 23,834,333 equity share warrants to Daiichi Sankyo Co. Ltd., Japan
(Daiichi Sankyo). Each equity share warrant was convertible into one equity share of Rs. 5 each at a premium
of Rs. 732 per share at any time between six months to eighteen months from the date of allotment of warrants
(Rs. 73.70 per warrant being 10% of the exercise price received).
On 20 April 2010, Daiichi Sankyo opted not to convert the warrants into equity shares. Hence, as per the terms
of the issue, the said warrants stand lapsed and the amount of Rs. 73.70 per warrant aggregating to Rs.1,756.59
paid by Daiichi Sankyo has been forfeited and taken to the Capital Reserve Account.
4.
On 1 July 2010, the Company transferred certain assets pertaining to its New Drug Discovery Research Centre
(including fixed assets, intangibles, inprocess developments) to Daiichi Sankyo India Pharma Private Limited
alongwith a noncompete and nonsolicitation agreement for a period of two years commencing from the date
of the agreement, for an aggregate consideration of Rs. 1,449.85 millions. Pursuant to this transaction, Rs. 210
million has been recognised as other operating income for noncompete fee and Rs. 131.81 as other income
included in profit on sale of assets.
5.

Impairment of investments and Goodwill

During the year, the Company has created a combined provision of Rs. 2,216.20 in the value of long term
investment held in Zenotech Laboratories Limited and Shimal Research Laboratories Limited as this diminution
is considered to be other than temporary.
133

Schedule - 23

6.

Further, the Company has also recorded goodwill impairment of Rs. 1,700 for Ranbaxy Pharmacie Generiques
SAS (a separate cash generating unit under Pharmaceutical segment). The recoverable amount of cash generating
unit has been derived on the basis of value in use using projected cash flows discounted at 10.50%.
The evaluation of provision involves usage of assumptions and significant judgement based on valuation
methodologies/ judgements. However, keeping the attendant circumstances in view, the management believes it is
prudent to impair these investments. These will be evaluated on a going forward basis for any further changes.
Sharebased compensation
The Companys Employee Stock Option Schemes (ESOSs) provide for the grant of stock options to eligible
management employees and Directors of the Company and its subsidiaries. The ESOSs are administered by the
Compensation Committee (Committee) of the Board of Directors of the Company. Options are granted at
the discretion of the committee to selected employees depending upon certain criterion. Presently, there are three
ESOSs, namely, ESOS I, ESOS II and ESOS 2005.
The ESOSs limits the maximum grant of options to an employee at 25,000 for ESOS I and 40,000 for
ESOS II and 3,00,000 for ESOS 2005 in any given year. ESOS I and II provide that the grant price of options
is to be determined at the average of the daily closing price of the Companys equity shares on the NSE during
a period of 26 weeks preceding the date of the grant. ESOS 2005 provides that the grant price of options will
be the latest available closing price on the stock exchange on which the shares of the Company are listed, prior
to the date of the meeting of the Committee in which the options are granted. If the shares are listed on more
than one stock exchange, then the stock exchange where there is highest trading volume on the said date shall be
considered. The options vests evenly over a period of five years from the date of grant. Options lapse if they are
not exercised prior to the expiry date, which is ten years from the date of the grant.
The Shareholders Committee have approved issuance of options under the Employees Stock Options Scheme(s)
as per details given below:
Date of approval
No. of options
29 June 2002
2,500,000
25 June 2003
4,000,000
30 June 2005
4,000,000
In accordance with the above approval of issuance of options, ESOPs have been granted from time to time.
The stock options outstanding as on 30 June 2005 are proportionately adjusted in view of the subdivision of
equity shares of the Company from the face value of Rs.10 each into 2 equity shares of Rs. 5 each.
Options granted upto 3 October 2002 are entitled for additional bonus shares in the ratio of 3:5.
The movement of the options (post split and without adjustment for bonus shares) for the year
Stock
Range of
options exercise prices
(numbers)
(Rs.)
7,413,016
216.00561.00
1,573,669
450.00450.00
(570,000)
216.00538.50
Exercised during the year**
(589,939)
216.00538.50
(425,603)
216.00538.50
7,401,143
216.00561.00
4,136,194
216.00561.00
134
average
remaining
exercise prices contractual life
(Rs.)
(years)
401.68
6.30
450.00
9.15
358.65
344.44
478.32
415.42
5.99
450.20
4.39

Schedule - 23

The movement of the options ((post split and without adjustment for bonus shares) for the year
Stock
options
(numbers)
Range of
average
remaining
exercise prices exercise prices contractual life
(Rs.)
(Rs.)
(years)
7,272,849
219.00-561.00
439.59
6.73
1,472,725
216.00-216.00
216.00
9.05
(530,760)
216.00-538.50
310.84
(36,825)
216.00-372.50
312.03
Exercised during the year#

(764,973)
283.50-538.50
471.97
7,413,016
216.00-561.00
401.68
6.30
3,906,091
216.00-561.00
455.98
4.88
*Includes options exercised, pending allotment.

# excluding 10,780 shares issued towards bonus entitlement.
7.
During the current year, exchange gain (net) on loans and net foreign exchange gain (other than on loans) is shown
as part of other income due to exchange gain in both years presented. Further, inventory of Active Pharmaceuticals
Ingredients (API) manufactured and lying at plants for captive consumption has been included under Work in
Progress. Accordingly, the related previous year figures have been reclassified.
8. Capital work-in progress includes:

[i] Project related expenses (directly allocable)
As at 31 December
Particulars
Opening balance
2010
2009
299.28
356.86
140.79
40.49
Addition during the year

10.90
26.62
Contributions to provident and other funds
3.39
1.18
Raw materials
5.18
4.54
Power and fuel
15.92
4.40
0.14
0.14
Insurance
Others
61.66
19.78
537.26
454.01
Less : Capitalised during the year
191.34
154.73
Balance as at year end
345.92
299.28
[ii] Capital advance to vendors
154.60
235.30
3,317.25
5,696.08
3,817.77
6,230.66
[iii] Other assets

Total of [i],[ii] and [iii]
135

Schedule - 23
9. Leases

a] Finance lease

The Group has acquired assets under finance lease comprising mainly of building, plant and machinery
and vehicles. The future minimum lease rentals and the present value of future minimum lease payments
as at 31 December 2010 and 31 December 2009 are as under:

ii) later than one year but not later than five
years
Total
Minimum lease
payments
Present value of minimum

lease payments
As at 31 December
As at 31 December
2010
2009
2010
2009
83.68
84.45
60.46
55.89
291.71
350.45
253.61
287.97
36.03
35.16
375.39
470.93
314.07
379.02

b] Operating lease

The Group has leased facilities under cancellable and non-cancellable operating leases arrangements with
lease terms ranging from 1 to 17 years, which are subject to renewal at mutual consent thereafter. The
cancellable arrangements can be terminated by either party after giving due notice. The lease rent expense
recognised during the year amounts to Rs. 860.61 (previous year Rs. 840.25). The future minimum lease
payments in respect of non-cancellable operating leases as at 31 December 2010 and 31 December 2009
are:
As at 31 December
2010
2009
274.07
248.28
ii) later than one year but not later than five years
576.08
537.65
64.36
120.99
914.51
906.92

Total

c]

10. a]
Premises given on operating lease

The Company has given a part of its premises Research and Development-III under cancellable operating
lease arrangement to a related party. Lease rentals amounting to Rs. 63 (previous year Rs. Nil) has been
recognised in the Consolidated Profit and Loss Account. As only a portion of these premises has been let
out, the gross carrying amount and the accumulated depreciation of leased premises/ assets is not separately
identifiable.
Foreign exchange (gain)/ loss other than on loans
For the year ended
31 December
Foreign exchange loss (net)
Fair valuation gain on derivatives (net)
2010
2009
263.38
1,282.65
(4,368.82)
(3,213.88)
(4,105.44)
(1,931.23)
b] Interest expense
Interest expense includes interest paid on fixed period loans and debentures amounting to Rs. 189.09 (previous
year Rs. 288.96).
136

Schedule - 23
11. Directors remuneration *
For the year ended
31 December
2010
2009
43.96
186.44
1.84
20.67
1.04
1.99
71.00
52.00
0.53
4.84
118.37
265.94
Salaries and allowances

Contribution to provident and other funds *
Directors' fee
Commission
Perquisites

* Does not include the following:

i)
Liabilities in respect of gratuity, pension, compensated absences determined (for one of the directors) as the
same is determined on an actuarial basis for company as a whole.
ii) Compensation cost Rs. nil for loss of office to a director (previous year Rs. 481.38).
Mr. Arun Sawhney was appointed as the Managing Director of the Company with effect from 20 August 2010
for a period of three years. The appointment and remuneration of Mr. Arun Sawhney as the Managing Director
has been approved by the Board of Directors, but the requisite regulatory approval from shareholders is yet to
be obtained. In accordance with the remuneration determined by the Board of Directors, Rs. 32.91 (including
commission) has been accounted for as an expense in the Consolidated Profit and Loss Account for the year ended
31 December 2010.
12. Details of investment purchased and sold during the year ended 31 December 2010 (previous
year Rs. nil) are as follows:
Particulars
6.85% IIFCL - 2014
9.00% IRFC - 2019
Units purchased
and sold
365,000
1,000,000
Purchase
value
37.54
112.72
Sale value
Loss on sale
37.34
111.85
0.20
0.87
13. Employee benefits

The following tables set out the disclosures relating to pension, gratuity and retirement pension payment plan as
required by Accounting Standard - 15 Employee Benefits:
Change in the present value of obligation:

Present value of obligation as at 1 January 2010
Add: Interest cost
Add: Current service cost
Less: Benefits paid
Add: Actuarial (gain)/ loss on obligations
Translation adjustments - (gain)/ loss
Present value of obligation as at 31 December 2010
137
Pension
Retirement
pension
payment plan
Gratuity
1,756.50
1,571.19
125.55
117.84
134.94
93.20
69.58
54.56
45.54
28.83
1,992.95
1,756.50
70.41
66.05
2.78
2.76
4.42
5.11
31.81
2.42
(0.10)
0.21
(7.07)
(1.30)
38.63
70.41
530.19
486.74
49.36
40.37
36.38
36.91
60.03
130.61
184.12
96.78
740.03
530.19

Schedule - 23
Change in the fair value of plan assets:
Fair value of plan assets as of 1 January 2010
Gratuity
444.31
439.19
46.89
36.28
239.35
98.99
(58.64)
(130.15)
671.91
444.31
Add: Actual return on plan assets

Add: Contributions
Less: Benefits paid
Fair value of plan assets as of 31 December 2010
Reconciliation of present value of defined benefit obligation and the
fair value of assets
Present value of funded obligation as of 31 December 2010
Gratuity
740.03
530.19
671.91
444.31
68.12
85.88
68.12
85.88
Less: Fair value of plan assets as at the end of the year

Present value of unfunded obligation as of 31 December 2010
Unfunded net liability recognised in the Consolidated Balance Sheet
Expense recognised in the Consolidated Profit and Loss
Account
Current service cost
Pension
Retirement
pension
payment plan
134.94
4.42
93.20
5.11
Add: Interest cost
125.55
2.78
117.84
2.76
Add: Expected return on plan assets
Less: Settlement cost/ credit

(15.69)
(31.81)
(2.51)
(2.42)
Add: Net actuarial (gain)/ loss recognised in the year
45.54
(0.10)
28.83
0.21
Total expenses recognised in the Consolidated Profit and Loss Account
290.34
(24.71)
237.36
5.66
The major categories of plan assets as a percentage of total plan assets are as under:
Particulars
Gratuity
49.36
36.91
36.38
40.37
(43.92)
(38.95)
(2.78)
(2.14)
164.84
99.47
203.88
135.66
Gratuity
Central Government securities

State Government securities
Bonds and securities of public sector / Financial Institutions
Deposit with Reserve Bank of India
138
10%
19%
4%
11%
86%
59%
0%
11%

Schedule - 23

The following table sets out the assumptions used in actuarial valuation of compensated absences,
pension and gratuity:
Particulars
Discount rate
Rate of increase in compensation
levels #
Rate of return of plan assets
Expected average remaining working
lives of employees (years)

Compensated
absences
Pension
Retirement
pension
payment plan
Gratuity
7.90%-8.00%
7.90%
4.45%
7.90%-8.00%
7.50%
7.50%
4.65%
7.50%
7.00%-10.00% 7.00%-10.00%
2.00%-3.00% 7.00%-10.00%
5.00%-10.00%
5.00%-10.00%
2%-3%
5%-10.0%
Nil
Nil
Nil
8%-9%
Nil
Nil
Nil
8%-9%
20.04-25.48
20.00
20.09 - 25.47
20.55-26.57
20.58
20.58 - 26.57
The liability for compensated absences as at 31 December 2010 was Rs. 447.89 (previous year Rs. 349.24).
# 10% for the first three years and 7% thereafter (previous year 10% for the first three years and 5%
thereafter).
Other plans
a) The Parent Company and certain Group companies also have defined contribution plans, which are largely
governed by local statutory laws of the respective countries and cover the eligible employees of the specific
entity. These plans are funded both by the members and by the company contributions, primarily based on
a specified percentage of the employees salary. The total contributions to these schemes during the year
ended 31 December2010 is Rs. 680.68 (previous year Rs. 622.13).
b) Further, USA based subsidiaries participates in a savings plan under Section 401(k) of the Internal Revenue
Code (Code) covering substantially all eligible employees. The plan allows for employees to defer up to
15% of their annual earnings within limitations specified under respective law on a pre-tax basis through
voluntary contributions to the plan.
The plan provides that these USA based subsidiaries can make optional contributions in an amount up to the
maximum allowable by respective law. Employees achieve a 25 percent vested status after one year of service and
fully vested status after three years of service. During the year ended 31 December 2010 the contributions to the
plan is Rs. 58.30 (previous year Rs. 47.13).
14. Hedging and Derivatives

a) The Company uses various forms of derivative instruments such as foreign exchange forward contracts,
options, cross currency swaps and interest rate swaps to hedge its exposure to movements in foreign exchange
and interest rates. These derivatives are not used for trading or speculation purposes.

b) Some of these derivatives are used as hedging instruments to hedge foreign exchange fluctuation risk on highly
probable transactions arising during the period upto the date of sales transaction. These sales transactions
are expected to occur over a period of January 2011 to July 2013 years which also approximates/ coincides
with maturity of hedging instruments. The ineffectiveness arising from cash flow hedges recognized in
Consolidated Profit and Loss Account is not material.
139

Schedule - 23

c)
The following are the outstanding derivative contracts entered into by the Company:
Category
Currency
Cross
Amount
Buy/ Purpose
Sell
Forward contracts*
USD
INR USD 249.00
Sell
Hedging
Forward contracts
EUR
USD
EUR 5 .00
Sell
Hedging
Forward contracts
ZAR
USD
ZAR 40.75
Sell
Hedging
Currency options
USD
INR USD 846.50
Sell
Hedging
Currency swaps
JPY
USD JPY 8,150.00
Buy
Hedging
JPY
JPY 7,400.00
Hedging
Cumulative mark to market loss on above
instruments, net #
Rs. (9,996.32)
Category
Currency
Cross
Amount
Buy/ Purpose
Sell
Forward contracts*
USD
INR
USD 20.00
Sell
Hedging
Forward contracts
EUR
USD
USD 1.44
Sell
Hedging
Currency options
USD
INR USD 1,038.50
Sell
Hedging
Currency swaps
JPY
USD JPY 10,350.00
Buy
Hedging
JPY
JPY 11,800.00
Hedging
Cumulative mark to market loss on above
instruments, net #
Rs. (16,062.18)
# determined based on valuation provided by banks i.e. counter party or observable market input including
currency forward and spot rates, yield curves, currency, volatility etc.
* Designated as cash flow hedge instruments.
The Companys unhedged foreign currency exposures on account of payables/ receivables not hedged are as
follows:
currency)
currency)
Receivables (net of advances) *
EURO
8.17
489.19
11.09
739.33
AUD
1.71
77.96
0.45
18.79
NZD
0.08
3.00
1.10
37.09
JPY
41.78
23.00
16.26
8.22
AED
0.65
8.24
MXN
8.36
30.00
Others
5.80
0.21
*USD - INR currency exposure for receivable balances is hedged fully, however USD to above currency is
unhedged to the extent stated above.
Payables (net of advances)
USD
44.30
1,980.68
18.16
844.65
EURO
4.87
291.04
2.40
160.01
JPY
41.77
23.01
24.22
12.24
KES
2.67
1.48
4.40
2.70
RUB
61.69
90.22
UAH
1.65
9.23
AED
0.52
6.31
140

Schedule - 23
currency)
currency)
0.05
3.68
40.28
3.57
15.94
4.84
5.40
3.19
GBP
CFR
KZT
Others #
Bank balances
USD
80.27
3,588.29
0.62
LTL
0.30
5.23
0.56
CFA
88.78
7.87
94.04
RUB
4.80
7.02
5.90
PLN
0.03
0.45
0.03
UAH
0.20
1.13
0.53
RMB
0.33
2.21
AED
0.20
2.43
0.23
KZT
13.85
4.20
0.05
KES
8.42
4.65
0.93
Others #
0.26
Loans
USD
957.93 42,828.98
666.86
EURO
6.67
# Exposures in other currencies which are not significant has been aggregated for this disclosure.
For derivatives refer to note 14(a) above.
28.84
10.81
9.55
3.83
0.49
3.04
2.95
0.01
0.57
2.39
31,016.74
444.68
15. Commitments, contingent liabilities and provisions

As at 31 December
2010
2009
19.08
48.07
i) Guarantees issued by subsidiaries

ii) Claims against the Group not acknowledged as debts, under dispute:
(a) DPCO *
1,952.90
1,703.30
(b) Octroi tax matters **
171.00
171.00
(c) Other matters ***
201.38
190.71
*
The Company has received demands for payment to the credit of the Drug Prices Equalisation Account
under Drugs (Price Control) Order, 1995 (DPCO) which is being contested by the Company in respect
of its various products. Further, the Company has deposited Rs. 325.59 (previous year Rs. 319.59) under
protest.
** The Company has been contesting a case with the Municipal Corporation of Mohali (MCM) under which
MCM is contesting that Octroi has to be paid by the Company at 1% as against 0.5% being paid by the
Company. The amount above represents the difference payable.
*** These represent cases pending at various forums on account of employee / worker related cases, State
electricity board, Punjab Land Preservation Act, etc.
iii) In respect of matters in (b) and (c) above, the amount represents the demands received under the respective
demand/ show cause notices/ legal claims, wherever applicable.
iv) The Company, directly or indirectly through its subsidiaries, severally or jointly is also involved in certain
patents and product liability disputes as at the year end. Due to the nature of these disputes and also in
view of significant uncertainty of outcome, the Company believes that the amount of exposure cannot be
currently determinable.
141

Schedule - 23
v)

Estimated amount of contracts remaining to be executed on

capital account and not provided for (net of advances)
899.63 902.94
Certain entities of the Group have created provision towards claims made against these entities in relation to
commercial, employees related and leased properties matters. The movement in provision is as follows:
As at 31 December
2010
2009
63.28
45.54
39.37
(63.28)
(27.79)
6.16
63.28
Balance as at the beginning of the year

Add: Provision made during the year
Less: payment made during the year
Translation adjustments
Balance as the end of the year
16. Related party disclosures

a] Relationship :

i] Holding company (also being the ultimate holding company)

1
Daiichi Sankyo Co., Ltd., Japan

ii] Fellow subsidiary (overseas) with whom transactions have taken place during the year or
previous year

1
Daiichi Sankyo India Pharma Private Limited, India (DSIN)

2
Daiichi Sankyo Europe GmbH

iii] Joint venture (overseas)

1 Nihon Pharmaceuticals Industry Co. Ltd., Japan (Investment made by Ranbaxy (Netherlands)
BV, the Netherlands) (upto 8 December 2009)

iv] Associates (domestic)

1

2

v] Key managerial personnel

1
Mr. Malvinder Mohan Singh, Chairman, CEO & Managing Director (upto 24 May 2009)

2
Mr. Atul Sobti, CEO & Managing Director (upto 19 August 2010)

3
Mr. Arun Sawhney, Managing Director (from 20 August 2010)

vi] Relatives of Key managerial personnel with whom transactions were carried out during the
previous year (upto 24 May 2009)

1
Mrs. Nimmi Singh, mother of Mr. Malvinder Mohan Singh

vii] Entities over which significant influence was exercised by Mr. Malvinder Mohan Singh with
whom transactions were carried out in the previous year (upto 24 May 2009)

1
Fortis Healthcare Limited (Including its subsidiaries)

2
Religare Securities Limited

3
Ran Air Services Limited

4
Religare Travels (India) Limited

5
Religare Capital Markets Limited

6
Super Religare Laboratories Limited

7

8
Religare Enterprises Limited

9
Escorts Heart Institute and Research Centre Limited

10 Religare Technova IT Services Limited (formerly Fortis Financial Services Limited)

11 Oscar Investments Limited
142

Schedule - 23

b] Transactions with the related parties

Transactions
Sales
Holding
Fellow
Joint
Key
Entities
company subsidiaries venture and management over which
associates
personnel
significant
influence is
exercised
Total
19.39
207.25
4.28
(25.34)
23.67
(25.34)
207.25
6.86
(40.06)
0.02
(0.23)
(1.46)
4.15
5.46
(2.20)
1.09
(0.36)
18.76
210.00
630.00
589.38
63.00
86.35
42.09
27.54
(7.49)
(0.69)
70.54
(32.30)
(0.96)
1.84
67.33
(250.64)
(13.73)
(98.03)
210.00
630.00
589.38
63.00
93.21
42.09
(54.48)
98.10
(40.02)
(1.46)
(0.96)
4.15
5.46
(2.20)
1.09
(0.36)
67.33
(250.64)
20.60
(98.03)
(97.57)
(97.57)
Figures in brackets are for previous year
63.00
63.00
Royalty, technical knowhow and product

development (income)
Non-compete fee
(income recognised)
Non-compete fee
(deferred income)
Sale proceeds of fixed assets
Rent received
Other income miscellaneous
Finished goods and
materials purchased
Product quality claims
Royalty paid
Personnel expenses
Technical services availed
Security deposit received
143

Schedule - 23

c]
Transaction in excess of 10% of the total related party transactions
Sr. Transactions
No.
Sales
Nihon Pharmaceuticals Industries Co.
Ltd., Japan
Royalty, technical know-how and
product development
Non compete fee from DSIN:Non-compete fee (income recognised)
Non-compete fee (deferred income)
Sale proceeds of fixed assets
Daiichi Sankyo India Pharma Private
Limited, India
Rent received
Limited, India
Other income - miscellaneous
Limited, India
Oscar Investments Limited, India
9
10
11
12
13
Finished goods and materials purchased

Zenotech Laboratories Limited, India
Product quality claims
Nihon Pharmaceuticals Industry Co.
Ltd., Japan
Royalty paid
Daichii Sankyo Co. Ltd., Japan
Related party
relationship
Holding company
Fellow subsidiary
Joint Venture
Year ended
Year ended
19.39
4.28
25.34
207.25
Fellow subsidiary
Fellow subsidiary
210.00
630.00
Fellow subsidiary
589.38
Fellow subsidiary
63.00
Fellow subsidiary
Holding company
78.25
40.06
Fellow subsidiary
42.09
6.87
6.86
70.54
27.54
32.30
7.49
Holding company
1.46
Joint venture
0.96
Holding company
4.15
Holding company
5.46
2.20
Holding company
1.09
0.36
Holding company
Entities over
which significant
influence is exercise
Entities over
which significant
Associate
Fellow subsidiary
144

Schedule - 23
Sr. Transactions
No.
Related party
relationship
14 Personnel expenses
Mr. Malvinder Mohan Singh
Mr. Atul Sobti
Mr. Arun Sawhney
Year ended
Year ended
Key Management
Personnel
Key Management
Personnel
Key Management
Personnel
15 Technical services availed

Fortis Clinical Research Limited, India
Holding company
Entities over
which significant
Religare Technova IT Services Limited, Entities over
India
which significant
16 Purchase of fixed assets
Religare Technova IT Services Limited, Entities over
India
which significant
17 Security deposit received
Fellow subsidiary
Limited, India
167.41
34.42
79.54
32.91
18.76
48.54
33.38
97.57
63.00
d] Balances due from/to the related parties

Transactions
Holding
Fellow
Joint
Key
Entities over
company subsidiaries venture and management which significant
associates
personnel
influence is
exercised
Debtors
8.13
28.76
(16.39)
Creditors
9.09
8.96
(0.96)
(7.40)
Payable to directors
(commission)
Figures in brackets are for previous year
0.17
(4.11)
21.00
(35.00)
Total
37.06
(16.39)
18.05
(12.47)
21.00
(35.00)
17. Segment information

Business segments

For management purposes, the Group reviews the performance on the basis of business units identified as
Pharmaceuticals and other business, which are reportable segments.

Pharmaceuticals segment comprises manufacture and trading of Formulations, Active Pharmaceuticals
Ingredients (API) and Intermediate, Generics, Drug discovery and Consumer Health Care products.

Other business comprises rendering of financial services.

Geographic Segments

The Groups business is organized into key geographic segments. Revenues are attributable to individual
geographic segments based upon the location of the customers. Assets and liabilities are attributable to individual
geographic segments based upon the location of the respective assets / liabilities.
145

Schedule - 23

Other Information
All segment revenue, expenses, assets and liabilities are directly attributable to the segments and disclosed
accordingly.

The accounting policies consistently used in the preparation of the consolidated financial statements are also
applied to revenues and expenditure of individual segments.

Segment information disclosures as required under accounting standard on Segment Reporting as specified in
the Companies (Accounting Standards) Rules, 2006.
a] Primary segment information
Pharmaceuticals
Others
Segment total
2010
2009
2010
2009
2010
2009
External revenue
89,605.39 75,969.46
2.32
0.90 89,607.71 75,970.36
Total Revenue
89,605.39 75,969.46
2.32
0.90 89,607.71 75,970.36
RESULTS
Profit before interest income, exchange 18,342.70
7,665.86
2.18
0.75 18,344.88
7,666.61
gain on loans, dividend, profit on sale
of investments (net), interest expense
and taxation.
Interest income
1,583.35
1,105.31
Exchange gain on loans (net)
1,406.98
1,493.13
Dividend income
91.70
9.78
Profit on sale of investments (net)
2,404.19
533.22
Interest expense
(613.89)
(710.43)
Tax charge
(5,848.76) (6,990.87)
Profit after tax
17,368.45
3,106.75
OTHER INFORMATION
Segment assets
96,724.45 96,558.31
18.86
9.32 96,743.31 96,567.63
Unallocated assets
44,867.91 24,967.63
Total assets
141,611.22 121,535.26
Segment liabilities
35,276.83 34,880.03
0.18
0.21 35,277.01 34,880.24
Unallocated liabilities
49,639.93 42,687.88
Total Liabilities
84,916.94 77,568.12
Capital expenditure
4,838.53
5,682.08
4,838.53
5,682.08
Depreciation / amortisation,
5,532.66
2,676.11
0.01
0.01 5,532.67
2,676.12
Non cash expenses other than
556.20
489.19
556.20
489.19
depreciation/amortisation
b] Secondary segment information - Geographical
India
Europe North America Asia Pacific
Africa
Others
Total
Segment revenue 21,890.27 15,423.78
30,341.36
6,320.41 7,132.26 8,499.63 89,607.71
(19,400.42) (15,896.74)
(19,574.98)
(6,937.96) (4,950.49) (9,209.77) (75,970.36)
Segment assets
73,779.49 37,489.45
18,288.63
2,132.68 5,645.00 4,275.97 141,611.22
(63,759.22) (28,542.63)
(15,650.02)
(3,202.75) (4,393.93) (5,986.71) (121,535.26)
Capital
3,045.77
231.55
719.36
172.00
519.77
150.09
4,838.54
expenditure
(2,938.13)
(758.76)
(1,349.60)
(73.34)
(479.14)
(83.11) (5,682.08)
Figures in brackets are for the year ended 31 December 2009
146

Schedule - 23
18. The share of minority shareholders in profit for the year of respective entities is as under:
For the year ended
31 December
2010
2009
59.89
53.81
21.51
19.15
16.74
38.89
14.08
1.86
3.84
3.44
2.00
0.01
(0.13)
(0.05)
125.59
109.45
Name of entity
Ranbaxy (Malaysia) Sdn. Bhd.
Ranbaxy Nigeria Limited
Ranbaxy (Guangzhou China) Limited
Terapia S.A
Ranbaxy Unichem Company Ltd
Be-Tabs Pharmaceuticals (Proprietary) Ltd
Be-Tabs Investments (Proprietary) Ltd
19. The share of the Company in profit / (loss) of associates is as under:
For the year ended

31 December
2010
2009
(64.02)
(48.19)
4.87
15.81
(59.15)
(32.38)
Name of entity

Dr. Tsutomu Une
Chairman
Arun Sawhney
Managing Director
Ranjit Kohli
Sushil K. Patawari
Company Secretary
Place : Gurgaon
Place : Gurgaon
147
Financial Detailsofthe
SubsidiaryCompanies
FOR THE YEAR ENDED DECEMBER 31, 2010

----------------------------------------------------- Rs. in Million ----------------------------------------------------Sr. Name of the
No. Subsidiary
Capital
Reserves
Total
assets
Total
liabilities
Investments Turnover
Profit Provision
(except in
before tax
for tax
case of
investment in
subsidiaries)*
Profit Proposed
after tax dividend
Domestic :
1
Solus Pharmaceuticals
Limited
149.01
625.60
785.24
10.63
780.05
(0.14)
(0.14)
250.08
(231.40)
18.87
0.18
2.18
0.39
1.79
Ranbaxy Drugs and

Chemicals Company
(A public company with
unlimited liability)
62.00
29.78
92.78
1.00
0.18
24.75
1.26
23.49
31.00
(0.53)
33.68
3.21
(0.05)
(0.05)
Ranbaxy SEZ Limited
Rexcel Pharmaceuticals
Limited
0.50
(0.10)
0.43
0.03
(0.02)
(0.02)
125.00
635.10
784.78
24.69
780.05
(0.09)
(0.09)
0.50
Ranbaxy Life Sciences

Research Ltd.
50.60
2.93
3.46
0.03
0.24
0.35
(0.26)
0.61
217.17
269.81
2.04
21.84
4.58
17.26
Ranbaxy Malaysia
Sdn. Bhd.
Malaysia
115.94
897.88
1,357.67
343.84
1,360.69
248.30
59.55
187.46
9.28
10 Ranbaxy (Hong Kong)

Limited
Hong Kong
13.80
118.40
140.14
7.93
116.34
48.57
48.57
1.34
(1.34)
0.02
11.21
11.21
291.92
439.74
1,579.39
847.73
1,475.96
99.90
36.85
63.05
2.44
487.49
1,077.72
587.80
1,737.58
143.78
40.18
103.60
(3.40)
378.24
381.64
784.50
42.02
11.77
30.25
37.34
29.53
133.42
66.55
267.32
35.46
7.70
27.76
1.85
(14.46)
28.59
41.20
36.66
5.12
5.12
1,520.98 (1,078.50)
888.57
446.09
1,411.07
(8.82)
(0.26)
(9.08)
Overseas :
9
11 Ranbaxy N.A.N.V.
Antilles, The Netherlands #
12 Basics GmbH
Germany
13 Ranbaxy (S.A.) (Proprietory)
South Africa
14 Sonke Pharmaceuticals
(Pty) Ltd
South Africa
15 Ranbaxy Egypt (L.L.C.)
Egypt
16 Rexcel Egypt (L.L.C.)
Egypt
17 Ranbaxy (U.K.) Ltd.
United Kingdom
18 Ranbaxy Poland S.P. Z.o.o.
Poland
64.53
35.38
145.67
45.76
410.33
21.71
11.10
10.61
19 Ranbaxy Do Brazil Ltda

Brazil
16.00
(16.00)
3.77
(6.58)
(2.81)
20 Ranbaxy Nigeria Ltd.

Nigeria
11.99
582.43
805.00
210.58
902.21
217.38
70.92
146.46
21 Ranbaxy Unichem
Company Ltd.
Thailand
148.43
218.34
500.85
134.07
556.67
30.45
13.68
16.77
22 Ranbaxy Farmaceutica
Ltda.
Brazil
468.11
96.48
1,449.75
885.16
2,399.83
405.87
134.39
271.48
65.76
(21.40)
243.61
199.24
326.95
(7.56)
(2.29)
(5.27)
23 Ranbaxy-PRP (Peru) S.A.C.

Peru
148

No. Subsidiary
24 Ranbaxy Europe Ltd.

United Kingdom
25 Ranbaxy Pharmaceutical,
Inc.
USA
26 Ranbaxy, Inc.
USA
27 Ranbaxy USA, Inc.
USA
Capital
Reserves
Total
assets
Total
liabilities
0.70
53.24
157.31
103.37
3,156.30
7,972.20
4,425.35 10,198.38
581.23
Profit Provision
(except in
before tax
for tax
case of
investment in
subsidiaries)*
Profit Proposed
after tax dividend
464.64
21.89
6.55
15.34
4,815.89
23,407.57
2,263.05
809.39
1,453.66
5,191.80
11.27
3.44
7.83
282.50
3.79
1.74
2.05
1,136.37
379.87
756.50
1,330.71 (1,079.32)
396.02
(683.30)
68.31
128.15
59.84
10.67
3,364.87
9,452.67
6,077.13
23,524.00
29 Ranbaxy Laboratories Inc.

USA
(295.23)
1,786.97
1,491.74
30 Ranbaxy Signature LLC,

USA
USA
(555.70)
2.39
558.09
26.60
(29.59)
(29.59)
7,726.32 30,138.49
57.04
199.60
278.47
53.41
225.06
28 Ohm Laboratories Inc.

USA
31 Ranbaxy (Netherlands)
B.V. (RNBV)
The Netherlands
32 Ranbaxy Holdings
(U.K.) Ltd.
United Kingdom
22,355.13
2,136.80
11.19
2,150.39
2.40
(0.39)
(0.39)
425.84
367.41
1,083.15
289.91
1,872.98
55.54
3.55
51.99
4.39
142.22
2,430.89
2,284.29
3,139.36
(116.07)
12.07
(104.00)
35 Ranbaxy Pharmacie
Generiques SAS
France
446.01
(156.32)
1,369.84
1,080.15
2,163.63
(332.38)
(9.73)
(342.11)
36 Ranbaxy Portugal - Com E

Desenvolv De Prod
Farmaceuticos Unipessoal
Lda
Portugal
232.34
(207.12)
78.34
53.13
186.58
(10.26)
(0.60)
(10.86)
37 Laboratorios Ranbaxy, S.L.

Spain
299.40
(702.48)
284.92
688.01
353.20
17.13
17.13
79.64
(61.62)
152.16
134.14
0.01
(6.18)
(2.39)
(8.57)
39 Ranbaxy Australia Pty. Ltd.

Australia
420.09
(645.15)
134.03
359.09
177.18
(104.78)
(104.78)
40 Ranbaxy Pharmaceuticals
Canada Inc.
Canada
100.90
555.05
1,582.31
926.35
2,784.15
118.62
40.85
77.77
41 Ranbaxy Italia S.p.A

Italy
994.01 (1,033.41)
760.81
800.20
683.29
(365.76)
(365.76)
42 Ranbaxy Mexico S.A. de

C.V.
Mexico
242.92
(310.52)
138.68
206.28
322.69
(69.09)
14.12
(54.97)
0.18
(20.24)
12.21
32.27
121.98
(12.64)
(7.66)
(20.30)
33 Ranbaxy Ireland Ltd.

Ireland
34 ZAO Ranbaxy
Russia
38 Office Pharmaceutique
Industriel Et Hospitalier
SARL (OPIH SARL )
France
43 Ranbaxy Mexico Servicios

S.A. de C.V.
Mexico
149

No. Subsidiary
Capital
Reserves
Total
assets
Total
liabilities
44 Terapia S.A.
Romania
352.41
6,448.72
8,292.49
1,491.36
5,543.58
1,356.65
296.20
1,060.45
45 Terapia Distributie SRL

Romania
0.42
(192.09)
484.47
676.12
693.10
9.36
0.23
9.13
46 Lapharma GmbH
Germany #
0.48
(0.46)
0.08
0.07
(0.08)
(0.02)
(0.10)
47 Ranbaxy Belgium N.V.

Belgium
33.64
11.31
170.42
125.47
366.84
(36.83)
(12.19)
(24.64)
48 Ranbaxy Pharma AB
Sweden
7.32
(6.51)
83.07
82.26
261.99
(3.58)
(0.70)
(4.28)
14.32
(14.32)
(13.37)
(0.05)
(13.42)
50 Be-Tabs Pharmaceuticals
(Proprietary) Ltd.
South Africa
511.57
2,772.13
2,260.55
1,117.78
(213.48)
(213.48)
51 Be-Tabs Investments
(Proprietary) Ltd.
South Africa
81.72
624.31
542.59
1.70
(8.31)
10.01
49 Ranbaxy Japan KK
Japan #
Profit Provision
(except in
before tax
for tax
case of
investment in
subsidiaries)*
Profit Proposed
after tax dividend
$ Rounded off to nil

*Detail of Investments
Name of the subsidiary
Particulars
Nature of investments
Face value Numbers
Solus Pharmaceuticals Limited Solrex Pharmaceuticals Company

(A partnership firm)
Solrex Pharmaceuticals Company

Capital
contribution
780.05
Rexcel Pharmaceuticals
Limited

Capital
contribution
780.05

Amount
(Rs. Million)
Notes:
(i) In terms of approval granted by the Central Government under Section 212(8) of the Companies Act, 1956, the annual accounts of the subsidiary
companies and the related detailed information will be made available upon request by the investors of the Company and of its subsidiary companies.
These documents will also be available for inspection by any investor at the Head Office of the Company at 12th Floor, Devika Tower, 6, Nehru Place,
New Delhi - 110019, and that of the subsidiary companies concerned.
(ii) The Board of Directors at its meeting held on November 11, 2010 approved for seeking exemption from the Government under Section 212(8) of the
Companies Act, 1956, in respect of all the subsidiary Companies.
(iii) The Company has consolidated the financial statements of subsidiaries as per Accounting Standard (AS) - 21 Consolidated Financial Statements. Issued
by the Institute of Chartered Accountants of India.
#

Divested/ liquidated during the year.

Ranbaxy N.A.N.V. Antilles, The Netherlands
Lapharma GmbH, Germany
Ranbaxy Japan KK, Japan
150
Notes :
151
Notes :
152

Ranbaxy - 2010 Annual Report

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Ranbaxy Laboratories Limited Annual Report 2010

Down memory lane...

Annual Report 1975

Annual Report 1995

Annual Report 2005

Annual Report 1985

Ranbaxy has a rich heritage and a glorious past.

Business & Operations ..................................12

Corporate Social Responsibility and

Global Human Resources ..............................30

Global Quality ...............................................29

The Golden Jubilee year is a time to celebrate our past

Managing Director's Message .........................8

he year 2010 is of special significance as your

Chairman's Message ........................................4

Dear Valued Shareholders,

Milestones on the Leadership Path..................2

Sales Rs. Million

Dr. Tsutomu Une

1965 1975 1985 1995 2005 2010

Joins hands with

Ranbaxy bags the

IPO (Initial Public

Makes its first

The Golden Jubilee

Ranbaxy Laboratories Limited Annual Report 2010

Dear Valued Shareholders,

he year 2010 is of special significance as your

Ranbaxy has a rich heritage and a glorious past. Your

I would like to assure you that it will

in our systems and processes that will

encompass R&D, production, supply

Ranbaxy Laboratories Limited Annual Report 2010

I am confident that with

Japan is another important market that is opening its doors to

The hybrid model seeks to go far beyond mere synergy and

In the year gone by, we also made

Ranbaxy has a highly experienced

the next big leap that will bring with it

Dr. Tsutomu Une

Ranbaxy Laboratories Limited Annual Report 2010

n 16th June 2011, Ranbaxy will complete 50 years

This enriching journey is a tribute to the significant

Ranbaxy observed strong growth momentum during the year

Emerging markets recorded sales of

Sales Rs. Million

US $ 507 Mn (Rs. 23,217 Mn)

assess gaps in supply, careful

To harness the potential of our Hybrid

Ranbaxy Laboratories Limited Annual Report 2010

Realigning the company's R&D

161 approvals. The company also filed

The company made significant

In South Africa, we opened a new

During the year, 178 Abbreviated New

Ranbaxy's manufacturing facility at the

The hallmark of innovative research practice and a research

The company successfully went

This year you will see many more

Ranbaxy Laboratories Limited Annual Report 2010

Key Markets Overview

Ranbaxy has 135 approved applications from the US FDA with

On the manufacturing side, Ohm